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BA7034 Industrial Relations and Labour welfare
3
BA7034 INDUSTRIAL RELATIONS AND LABOUR WELFARE LT P C
UNIT I INDUSTRIAL RELATIONS 7
Concepts – Importance – Industrial Relations problems in the Public Sector –
Growth of Trade Unions – Codes of conduct.
UNIT II INDUSTRIAL CONFLICTS 12
Disputes – Impact – Causes – Strikes – Prevention – Industrial Peace – Government
Machinery – Conciliation – Arbitration – Adjudication.
UNIT III LABOUR WELFARE 8
Concept – Objectives – Scope – Need – Voluntary Welfare Measures –
Statutory Welfare Measures – Labour – Welfare Funds – Education and Training
Schemes.
UNIT IV INDUSTRIAL SAFETY 9
Causes of Accidents – Prevention – Safety Provisions – Industrial Health and
Hygiene – Importance – Problems – Occupational Hazards – Diseases –
Psychological problems – Counseling – Statutory Provisions.
UNIT V WELFARE OF SPECIAL CATEGORIES OF LABOUR 9
Child Labour – Female Labour – Contract Labour – Construction Labour –
Agricultural Labour – Differently abled Labour –BPO & KPO Labour - Social
Assistance – Social Security – Implications.
TOTAL: 45 PERIODS
TEXT BOOKS
1. Mamoria C.B. and Sathish Mamoria, Dynamics of Industrial Relations,
Himalaya Publishing
House, New Delhi, 2007.
2. Arun Monappa, Ranjeet Nambudiri, Patturaja Selvaraj. Industrial relations &
Labour Laws. TataMcGraw Hill. 2012
1. Ratna Sen, Industrial Relations in India, Shifting Paradigms, Macmillan India
Ltd., NewDelhi, 2007.
2. C.S.Venkata Ratnam, Globalisation and Labour Management Relations,
Response Books,2007.
3. Srivastava, Industrial Relations and Labour laws,
4. P.R.N Sinha, Indu Bala Sinha, Seema Priyardarshini Shekhar. Industrial
Relations, Trade Unions and Labour Legislation. Pearson. 2004
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CONTENTS
CHAPTER TOPICS PAGE
NO
1
INDUSTRIAL RELATIONS 5-17
1.1 Concepts
1.2 Importance
1.3 Industrial relations problems in the public sector
1.4 Growth of Trade unions
1.5 Codes of conduct
2
INDUSTRIAL CONFLICTS 18-28
2.1 Disputes
2.2 Impact
2.3 Causes
2.4 Strikes
2.5 Industrial peace
2.6 Government machinery
2.6.1 Conciliation
2.6.2 Arbitration
2.6.3 Adjudication
3
LABOUR WELFARE 29-40
3.1 Concepts
3.2 Objectives
3.3 Scope
3.4 Need
3.5 Voluntary measures
3.6 Statutory welfare measures
3.7 Labour welfare funds
3.8 Education and Training programme
4
INDUSTRIAL SAFETY 41-54
4.1 Causes of accidents
4.2 Prevention
4.3 Safety provisions
4.4 Industrial health
4.4.1 Hygenie &importance,problems
4.5 Occupational Hazards
4.6 Diseases
4.7 Psychological problems
4.8 Counselling
4.9 Statutory provisions
WELFARE OF SPECIAL CATEGORIES OF LBOUR 55-66
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5
5.1 Child labour
5.2 Female labour
5.3 Contract labour
5.4 Construction labour
5.5 Agricultural labour&differently abled labour
5.6 BPO&KPO Labour
5.7 Social assistance
5.8 Social security
QUESTION BANK 67-101
UNIVERSITY QUESTION PAPERS 101-
109
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CHAPTER 1
INDUSTRIAL RELATION
1.1 Concepts of Industrial Relations.
Industrial Relations
The Term ―Industrial Relations‖ commonly denotes ―employee – employee relations‖,
in both organized and unorganized sectors of the economy. Industrial Relations (also
known as labour – management relations or labour relations) will be treated here as the
study of employee – employer relationship and the outcome of such relationship.
Definition
According to Kapoor defined as the ―Industrial Relations is a developing and dynamic
concept and such no more limits itself merely to the complex relations between the
unions and management but also refers to the general web of relationships normally
obtaining between employees – a web much more complex than the single concept of
labour capital conflict‖.
Features of Industrial Relations
 Industrial Relation do not emerge in vacuum they are born of employment
relationship in an industrial setting. Without the existence of the two parties, i.e.,
labour and management, this relationship cannot exist.
 It provides the environment for industrial relations.
 Industrial Relation are characterized by both conflict and co-operations.
 The focus of Industrial Relations in on the study of the attitudes, relationships,
practices and procedure developed by the contending parties to resolve or at least
minimize conflicts.
The main objectives of industrial relations system are
 To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.
 To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a
country.
 To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.
 To establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that ban
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individuals personality may grow its full stature for the benefit of the industry and
of the country as well.
 To eliminate or minimize the number of strikes, lockouts and gheraos by providing
reasonable wages, improved living and working conditions, said fringe benefits.
 To improve the economic conditions of workers in the existing state of industrial
managements and political government.
 Socialization of industries by making the state itself a major employer
 Vesting of a proprietary interest of the workers in the industries in which they are
employed.
Scope of industrial relations
 Protecting the interest of the employees
 Providing reasonable wages to employees
 Providing safe and hygienic working conditions
 Providing social security measures
 Maintaining strong Trade Unions
 Collective bargaining
Industrial peace and democracy could be developed and maintained by:
 Settlement of industrial disputes through mutual understanding and agreements
 By evolving various statutory measures
 By formation of various machineries such as works committee, boards of
conciliation labour courts etc.
 Workers participation in management
 Recognizing human rights
The main aspects of Industrial Relations are:-
 Labor Relations, i.e. relations between union and management
 Employer-employees relations, i.e. relations between management and employees
 Group relations, i.e. relations between various groups of workmen
 Community or Public relations, i.e. relations between industry and society.
 Promotions and development of healthy labor-managements relations.
 Maintenance of industrial peace and avoidance of industrial strife
 Development of true industrial Democracy
1.2 Importance of industrial relation
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 Uninterrupted production
 Reduction in Industrial Dispute
 High morale - Industrial relation improves the morale of employees
 Mental revolution
 Economic growth and Development
 Discourages unfair practices
 Enactment of statutory provisions
Uninterrupted Production
 To ensure continuity of production.
 continuous employment for all from manager to workers
 The resources are fully utilized, resulting in the maximum possible production. There
is uninterrupted flow of income for all.
Reduction in Industrial Disputes
Good industrial relation reduces the industrial disputes.Disputes are reflections of the
failure of basic human urges or motivations to secure adequate satisfaction or
expression which are fully cured by good industrial relations.
High morale
Good industrial relations improve the morale of the employees. Employees work with
great zeal with the feeling in mind that the interest of employer and employees is one
and the same, i.e. to increase production.
Mental Revolution
The main object of industrial relation is a complete mental revolution of workers and
employees. The industrial peace lies ultimately in a transformed outlook on the part of
both. It is the business of leadership in the ranks of workers, employees and
Government to work out a new relationship in consonance with a spirit of true
democracy.
New Programmes
New programmes for workers development are introduced in an atmosphere of peace
such as training facilities, labor welfare facilities etc. It increases the efficiency of
workers resulting in higher and better production at lower costs.
Reduced Wastage
Good industrial relations are maintained on the basis of cooperation and recognition
of each other. It will help increase production. Wastages of man, material and
machines are reduced to the minimum and thus national interest is protected.
Functional Requirements Of A Successful Industrial Relations Programme
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Top Management Support:
Since industrial relations is a functional staff service, it must necessarily derive its
authority from the line organization. This is ensured by providing that the industrial
relations director should report to a top line authority to the president, chairman or
vice president of an organization.
Sound Personnel Policies:
These constitute the business philosophy of an organization and guide it in arriving at
its human relations decisions. The purpose of such policies is to decide, before any
emergency arises, what shall be done about the large number of problems which crop
up every day during the working of an organization. Policies can be successful only
when they are followed at all the level of an enterprise, from top to bottom.
Adequate Practices should be developed by professionals:
In the field to assist in the implementation of the policies of an organization, a system
of procedures is essential if intention is to be properly translated into action. The
procedures and practices of an industrial relations department are the ―tool of
management‖ which enables a supervisor to keep ahead of his job that of the time-
keeper, rate adjuster, grievance reporter and merit rater.
Detailed Supervisory Training:
To ensure the organizational policies and practices are properly implemented and
carried into effect by the industrial relations staff, job supervisors should be trained
thoroughly, so that they may convey to the employees the significance of those
policies and practices. They should, moreover, be trained in leadership and in
communications.
Follow-up of Results:
A constant review of an industrial relations programme is essential, so that existing
practices may be properly evaluated and a check may be exercised on certain
undesirable tendencies, should they manifest themselves. A follow up of turnover,
absenteeism, departmental morale, employee grievances and suggestion; wage
administration, etc. should be supplemented by continuous research to ensure that the
policies that have been pursued are best fitted to company needs and employee
satisfaction. Hints of problem areas may be found in exit interviews, in trade union
demands and in management meetings, as well as in formal social sciences research.
Difference between industrial relations and human relations:
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The term ―Industrial Relations‖ is different from ―Human Relations‖. Industrial
relations refer to the relations between the employees and the employer in an industry.
Human relations refer to a personnel-management policy to be adopted in industrial
organizations to develop a sense of belongingness in the workers improves their
efficiency and treat them as human beings and make a partner in industry.
Industrial relations cover the matters regulated by law or by collective agreement
between employees and employers. On the other hand, problems of human relations
are personal in character and are related to the behavior of worker where morale and
social elements predominated. Human relations approach is personnel philosophy
which can be applied by the management of an undertaking. The problem of
industrial relations is usually dealt with a three levels – the level of undertaking, the
industry and at the national level. To sum up the term ―Industrial Relations‖ is more
wide and comprehensive and the term ―Human Relations‖ is a part of it.
Suggestions to Improve Industrial Relation
Both management and unions should develop constructive attitudes towards each
other
All basic policies and procedures relating to Industrial Relation should be clear to
everybody in the organization and to the union leader. The personnel manager must
make certain that line people will understand and agree with these policies.
The personnel manager should remove any distrust by convincing the union of the
company‘s integrity and his own sincerity and honesty. Suspicious, rumors and
doubts should all be put to rest.
The personnel manager should not vie with the union to gain workers‘ loyal to both
the organization. Several research studies also confirm the idea of dual allegiance.
There is strong evidence to discard the belief that one can owe allegiance to one
group only.
Management should encourage right kind of union leadership. While it is not for the
management to interfere with union activities, or choose the union leadership, its
action and attitude will go a long way towards developing the right kind of union
leadership. ―Management gets the union it deserves‖ is not just an empty phrase.
1.2 Industrial relations problems in the public sector
Public Enterprise
Company whose shares are available and traded on the stock market or other over-the-
counter market. Subject to more regulation than a privately owned company, a public
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enterprise has greater access to financing. Shareholders own a percentage of the
company based on the amount of stock they own.
Wage differentials
It is an area where comparison between the public and private sectors is becoming
common.The policy of settlement of wage structure,equal pay for equal work,wage
differentials due to levels of responsibilities etc are all the issues that concern the
labour in public enterprises.
Industrial relations
―Industrial Relations is a developing and dynamic concept and such no more limits
itself merely to the complex relations between the unions and management but also
refers to the general web of relationships normally obtaining between employees – a
web much more complex than the single concept of labour capital conflict‖.
Surplus labour
This problem is the outcome of indiscriminate recruitment on account of political
pressures,reduction of activities,structural changes and improvement in technology.
Over centralization
Management decisions taken at local shop level are turned down by the higher
authorities.This type of over centralization the local management lose the prestige and
confidence.
Multipricing of unions
The existence of multiple union has brought the evils of inter union rivalaries.
Political and bureaucratic influence
Public enterprises are highly prone to be influenced by political and bureaucratic set
up.Generally political people influenced decision making process
1.4 Growth of Trade Union
Trade Union
In the words of Indian Trade Union Act, 1926, ―A trade union is any combination,
whether temporary or permanent, formed primarily for the purpose of regulating the
relations between workmen and employers, or between workmen and workmen,
between employers and employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes any federation of two or more trade
unions‖.
Define Trade Union.
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According to Dale Yoder defined as ―A trade union is a continuous association of wage
– earners for the purpose of maintaining or improving the conditions of their working
lives‖.
The growth and development of the labour movement, and for that part of the trade
unions, in India, can be divided into following periods, each of them revealing
different tendencies that mark it from others.
Functions of Trade Unions
 To secure fair wages for workers.
 To safeguard the security or tenure and improve conditions of service.
 To enlarge opportunities for promotion and training.
 To improve working and living conditions.
 To provide for educational, cultural and recreational facilities.
 To cooperate and facilitate technological advancement by broadening the
understanding of workers in the issues involved in their jobs.
 To promote identity of interests of the workers with their industry.
 To offer responsive cooperation in improving levels of production and
productivity, discipline and high standards of quality.
 To promote individual and collective welfare.
Features
The main characteristics of the trade unionism are:
Small size of membership,
Lack of adequate finance,
Non fulfillment of welfare schemes,
Control of political parties,
Outside interference in the activities of labor unions
Social Welfare period, from 1875 to 1918
The development of industries led to large scale production on the one hand and social
evils like employment and exploitation of women and child labour and the
deplorable working conditions, the government‘s attitude of complete indifference
in respect of protection of labour from such evils, on the other
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Early Trade Union period, from 1918 to 1924
The year 1918 was an important one for the Indian trade union movement. ―It market
the start of a new era, an era of growth and one in which the leadership of the trade
unions was to pass from the hands of the social workers into the hands of the politicians
Left-wing Trade Unionism period, from 1924 to 1934
In 1924, a violent and long-draw-out strike by unions led to the arrest, prosecution,
conviction and imprisonment of many communist leaders. The AITUC emerged as the
representative of the Indian working class. By 1927 it united 57 unions with a
membership of 150,555. the rapid growth of the trade unionism was facilitated by the
growth anti-imperialist national movement;
 The brutal violence and repressive measures let loose by the British government,
particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate arrest
and imprisonment of national leaders and Satyagrahis;
 The phenomenal profits earned by the capitalist in the face of falling real ages
during the post-war period.
Trade Unions’ Unity period from 1935 to 1938
In mid-thirties of the 20th century the state of divided labour movement was natural
thought undesirable and soon after the first split, attempts at trade union unity began to
be made through the efforts of the Roy Group on the basis of ‗a platform of unity‘. The
imitative taken by All-India Railwaymen‘s Federation (s neutral body) had shown
fruitful results.
This Federation in its conference at Bombay, formed a Trade Union Unity committee
in 1932. The Committee adopted the following ―platform of unity‖. ―A trade union is an
orange of class-struggle; its basis task is to organize the workers for advancing and
defending their rights and interests. Negotiation, representations and other methods of
collective bargaining must remain an integral part of the trade union activates.‖
Second World War period from 1939 to 1945
The Second World War, which broke out in September 1939, created new strains in the
united trade union movement. These strains arose because of the different political
factions in the AITUC related in different ways to the role of India as a protagonist in
the war.
Post – independence period from 1947 to date.
As pointed out earlier, when attempts to restructure the AITUC failed, those believing
in the aims and ideals other than those of the AITUC separated from the organization
and established the Indian National Trade Union Congress (INTUC) in May, 1947
1.5 CODE OF CONDUCT.
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A code of conduct is a set of rules outlining the social norms and rules and
responsibilities of, or proper practices for, an individual, party or organization. Related
concepts include ethical, honor, moral codes and religious laws
Objectives of Code of Conduct
 To ensures that the employers and employees recognize each other‘s rights and
obligations.
 To avoid work stoppage.
 To facilitate the free growth of trade unions.
 To maintain discipline in industry.
Principles of code of conduct.
 Every employee in industry or unit shall have the freedom and right to join a union
of his choice. No coercion shall be exercised in this matter.
 There shall be no dual membership of unions.
 There shall be regular and democratic elections of executive bodies.
 Casteism, communalism and provincialism shall be eschewed by all unions.
 There shall be no violence, cocercion, intimidation, or personal vilification in inter –
union dealings.
 All Central unions shall combat the formation or continuance of company unions.
What a Code Can Help to Accomplish
 A quality code of conduct can go a long way in improving a company‘s
success. Companies that view a code merely as a way to communicate legal
rules miss much of the value that a code can provide. A well-developed code
can help a company to:
 Prevent legal and regulatory violations. This is the first objective that most
companies attach to a code of conduct. When violations do occur, a code can
help to detect them and mitigate their effects.
 Foster greater employee loyalty and retention. When employees feel included
and engaged in the company‘s culture and success, they feel more committed.
 Encourage greater customer loyalty and retention. When customers learn about
and then experience in practice a company‘s high standards of conduct,
customers are more likely to show their appreciation.
 Build stronger relationships with suppliers and other business partners. As with
employees, the more that they understand what the company expects of them –
and what they can expect from the company – the stronger the alliance.
 Strengthen trust and respect of other stakeholders, such as local communities,
regulators, NGOs, even from competitors. As codes become publicly available
publications, more outside stakeholders are reviewing them and setting their
expectations of the company partly based on its code. The more that a company
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lives up to the expectations that it has established, the greater goodwill it
engenders.
 Build a stronger reputation for integrity by helping the company to do what it
says it will do.
How a Code Works
 A quality code of conduct helps a company‘s leadership to accomplish its
strident objectives because of how the code functions. As part of an overall
code of conduct program, a code works because it:
 Articulates leadership’s expectations. Simply establishing these expectations
regarding what leadership expects is worthwhile. It provides clarity and
transparency so that staff does not have to guess at leadership‘s expectations.
 Establishes leadership’s commitment. Much as been addressed regarding the
importance of ―tone at the top‖; regarding expectations of responsible conduct,
this tone rises in importance.
 Provides staff with a roadmap and tools for their daily work. With clarity
regarding leadership‘s expectations that an employee can easily and regularly
reference, staff can act with consistency. Further, employees can turn to the
code for guidance on questions or concerns. It is especially important to help
employees to make good decisions when they face ambiguous situations or
other issues that the code does not directly address.
 Provides staff with comfort and confidence. As ethics consultant Frank
Navran puts it, a code can provide staff with comfort that the company will
support them when they act according to the code and confidence that the
decisions they make when they are in line with the code.
 Encourages staff to serve the company’s aspirations. A good code can
encourage employees to strive to achieve the company‘s mission, vision and
values in a constructive way.
Elements of an Effective Code
 A code of conduct publication does not work in a vacuum. Important factors for
a successful code include:
 Foundations that support a successful code program.
 Components of a successful code program.
 Dimensions for an effective code publication.
Foundations for a Program
 These foundations serve as important considerations for a successful code of
conduct program. While not all of the foundations are mandatory – and in fact
they will exist in each company in varying forms – the more firmly that they are
established, the more likely that the code (and the larger ethics and compliance
initiative) will lead to success.
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 Leadership commitment to the program – Without senior leadership‘s
commitment, any code initiative is unlikely to truly engage employees and
demonstrate to them the ―tone at the top‖ that is so critical to any business
initiative – especially one focused on ‗doing the right thing.‘
 Ethics and compliance processes – Leadership‘s commitment means so much
more when the organization can point to procedures and processes that support a
code standards and expectations. Otherwise, employees are right to wonder
about how leadership expects to achieve adherence to the company‘s standards
and address concerns.
 Company culture – A company culture focused around an enduring mission or
vision and supported by lasting values sets the best foundation for a proper
focus on long-term value and success. These core foundations help a code rise
about a narrow focus only on the law to other commitments, promises and
aspirations that the company seeks to achieve.
 Understanding of risk – A company‘s awareness of the ethics and compliance
risks that it faces is central to a code of conduct. With the hundreds of issues
that a code could possibly address, a more targeted risk identification and
assessment effort helps to focus the code‘s contents to those issues that are most
important to the company‘s operations and that will provide it with a higher
chance of success.
 Coordination with policies – A company‘s policies often provide the detail
underlying its expectations. Policies also can provide the initial framework for a
new code of conduct and serve as additional resources to support a code‘s
standards. Where policies exist, they provide important context for a code
development or revision effort.
Four Parts
Part 1: Contains the duties and responsibilities of employers, workers, and the
government in maintaining discipline in industry
Part 2: Enlists the common obligations of Management and unions
Part 3 : Deals with obligations of management only
Part 4: Relates to those unions only
Part1: To maintain Discipline in Industry ( Both in public and Private sector)
 Recognition of employers and workers must be defined by laws and agreements.
 Proper and willing discharge by either party of its obligation consequent on such
recognition.
Part2: To Ensure Better discipline in Industry , Management and Union(s) Agree
 No Unilateral action should be taken
 Existing machinery for settlement of dispute.
 No strike or lockout without notice
 Must follow the democracy principles by mutual negotiation, conciliation and
voluntary arbitration
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 Must promote constructive cooperation
 In Grievance based speedy and full investigation must be followed.
 Educate the Management and workers regarding obligations
Part3: Management Agrees
 Not to increase workloads
 Not to support or encourage any unfair labor practice as interference,
discrimination, victimization
 To take prompt actions as settlement of grievance Implementation of
settlements, awards, decisions and orders
 To take appropriate disciplinary action against officers and members in which
they are responsible for indiscipline among employees.
 Warning, reprimand, suspension will appeal through normal grievance
procedure.
 Must follow the rules of Indian Labor conference held in May 1958.
Part4:Union(s) Agree
 Not to encourage any form f physical duress
 Not to Permit demonstrations
 Unless law, agreement or practice the employee must not engage in any union
activity during working hours
 Discourage unfair labour practices as damage to property, careless operation
 To take prompt action to implement awards , agreements and decisions.
 To display the rules in local languages at important places in union offices.
 Moral sections of code of conduct
 To ask the unit to explain the infringement of the code
 To give notice to the unit within specific period
 Not to give countenance to non members who did not observe the code
 A dispute must not be referred for strikes and lockouts
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CHAPTER 2
INDUSTRIAL CONFLICTS
2.1 Industrial Disputes.
Industrial Disputes mean any dispute or difference between employers and
employers, or between employers and workmen or between workmen and workmen,
which is connected with the employment or non – employment o r term of
employment or with the conditions of labour of any person‖.
Definition
According to the Industrial Disputes Act, 1947, Section 2(k); ―Industrial Disputes
mean any dispute or difference between employers and employers, or between
employers and workmen or between workmen and workmen, which is connected
with the employment or non – employment o r term of employment or with the
conditions of labour of any person‖.
2.2 Impacts of industrial relations conflict for a business
Industrial relations conflict can affect the business in the following way.
 Reduced productivity
 Loss of profits
 Damage to public image
 Difficulty in recruiting & keeping staff
 Wasted time and energy
 Increased costs
1.Reduced productivity
Due to lack of interests, labour will not concentrate in quantity and quality of
production. It leads to loss of profit.
2. Loss of profits
Even though all companies and organizations are targeting in profits, they can‘t
proceed for that goals because of labour absence and decrease in production.
3. Damage to public Image
Company‘s good will and self image is very important in this competitive world. So,
due to industrial disputes and strikes that image will be get down in people mind.
4. Difficulty in recruiting & keeping staff
Employee must have the value and satisfaction in their working period about the
company, but if the firm‘s value has damaged due to industrial disputes means the
company can‘t recruit any other employees to their company and fulfilment of goals.
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5. Wastage of time and Energy
If unnecessary disputes arises inside the organization and it is continuing means it will
result in major discussion and finally it leads to wastage of time and energy.
6. Increased costs
The mantra for perfect business is decrease in cots and increase in profits, but the
increase in industrial disputes will have the main problem of increase in costs and
decrease in production and also the profit
Major impacts:
1. Unrest and unnecessary tensions engulf the hearts and minds of all the people
involved - labour and senior management.
2. There is economic loss due to conflicts because conflicts may result in strikes and
lock-outs. This causes low or no production resulting in industrial loss.
3. Industrial loss may cause economic depression because many industries are
interlinked. A problem in one industry may drastically affect another industry.
4. The lives of low-level labourers become worse when they are out of work. They may
be the only working members of the family, and their joblessness may lead everyone in
the family to poverty.
5. When industrial conflicts get out of hand, they become a threat to peace and security.
Workers may resort to violence and indulge in sabotage.
2.3 Causes Of Industrial Disputes
Handling employee misconduct is a very critical task to be performed by the senior
managers. Misconduct and other offensive behaviors often lead to decreased levels of
productivity as they affect the individual performance of the employees. To manage
discipline among employees, every company opts for a discipline policy which
describes the approach it will follow to handle misconduct.
The causes of industrial disputes can be broadly classified into two categories:
economic and non-economic causes. The economic causes will include issues relating
to compensation like wages, bonus, allowances, and conditions for work, working
hours, leave and holidays without pay, unjust layoffs and retrenchments. The non
economic factors will include victimization of workers, ill treatment by staff members,
sympathetic strikes, political factors, indiscipline etc.
 Wages and allowances
 Personnel and retrenchment
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 Indiscipline and violence
 Bonus
 Leave and working hours
Wages and allowances
Since the cost of living index is increasing, workers generally bargain for higher
wages to meet the rising cost of living index and to increase their standards of living.
In 2002, 21.4% of disputes were caused by demand of higher wages and allowances.
This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%. In
2005, wages and allowances accounted for 21.8% of disputes.
Personnel and retrenchment
Personnel and retrenchment: The personnel and retrenchment have also been an
important factor which accounted for disputes. During the year 2002, disputes caused
by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2%
and 0.4% respectively. In 2003, a similar trend could be seen, wherein 11.2% of the
disputes were caused by personnel, while 2.4% and 0.6% of disputes were caused by
retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by
personnel, and only 0.4% were caused by retrenchment.
Indiscipline and violence:
From the given table, it is evident that the number of disputes caused by indiscipline
has shown an increasing trend. In 2002, 29.9% of disputes were caused because of
indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and
41.6% of disputes were caused due to indiscipline respectively. During the year 2003,
indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all
disputes, followed by cause-groups wage and allowance and personnel with 20.4%
and 11.2% respectively. A similar trend was observed in 2004 where indiscipline
accounted for 40.4% of disputes.
Bonus:
Bonus has always been an important factor in industrial disputes. 6.7% of the disputes
were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and
2005 respectively
Leave and working hours:
Leave and working hours: Leaves and working hours have not been so important
causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave
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and hours of work while this percentage increased to 1% in 2003. During 2004, only
0.4% of the disputes were because of leaves and working hour
Consequences of Industrial Conflicts
 Unrest and unnecessary tensions engulf the hearts and minds of all the people
involved - labourers and senior management.
 There is economic loss due to conflicts because conflicts may result in strikes and
lock-outs. This causes low or no production resulting in industrial loss.
 Industrial losses may cause economic depression because many industries are
interlinked. A problem in one industry may drastically affect another industry.
 The lives of low-level labourers become worse when they are out of work. They
may be the only working members of the family, and their joblessness may lead
everyone in the family to poverty.
 When industrial conflicts get out of hand, they become a threat to peace and
security. Workers may resort to violence and indulge in sabotage.
2.4 Strikes
 Strike is ―a temporary cessation of work by a group of employees in order to
express their grievance or to enforce a demand concerning changes in work
conditions‖.
 Section 2(q) of the Industrial Disputes Act, 1947, defines a strike as ―a
cessation of work by a body of persons employed in any industry acting in
combination, or a concerted refusal under a common understanding of a
number of persons who are or have been so employed to continue to work or
to accept employment‖.
Types of Strikes
 Go slow - Go slow does not amount to strike but it is a serious case of
misconduct.
 Hunger strike-Some workers may resort to fast on or near the place of work or
residence of the employer
 Lightning or wildeat strike -It is an unofficial strike ie., a strike not sanctioned
by the union. Such strikes occur in violation of the no strike pledge in collective
bargaining agreements
 Stay in, sit down, pen down or Tool down strike- In all such cases the
workmen after taking their seats, refuse to do work by their combination
 Symapathetic strike-Cessation of work in the support of the demand workmen
belonging to their employer. The management can take disciplinary actions for
the absence of workmen.
 Economic Strike-In this type the members of trade union stop work to enforce
their economic demands such as increase in wages, bonus and other benefits.
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 General strike-It means a strike by members of all or most of the unions in
region or an industry. It nay be a strike of all or most of the unions in region or
an industry.
 Lock outs-It is declared by the employers to put pressure on their workers.It is
an act on the part of the employers to close down the place of work until the
workers agree to resume work on the terms and conditions specified by the
employers.
 Lay off-Lay off means failure, refusal or inability of an employer, shortage of
power or raw materials or accumulation of the stocks or the breakdown of the
machinery or for any other reason not to give employment to a workman.
 Retrenchment-It means the termination of the service of a workman for any
reasons by the employer. It does not include the voluntary retirement of the
workman.
 Gherao-It denotes collective action by the workers which members of the
management will be imprisoned by them.
 Picketing-When workers are dissuaded a certain men at the factory gates it is
called as picketing. It is perfectly legal . It is to draw the attention of public.
 Boycott-The workers may decide to boycott the company by not using its
products. It affects marketability of its products.
2.5 Industrial peace
Industrial peace is not merely a negative concept signifying the absence of industrial
unrest, or the reconciling of hostile forces in order to avoid ruinous strife, but it also
signifies the active presence of harmonious and good industrial relations generating
amity and goodwill between the partners in an industry – a condition which is both
the cause and effect of fruitful co – operation
1. Strong trade union with democratic norms
2. Employers should have progressive outlook
3. Employers should recognize the rights of the workers
4. Both (workers and management) should faith in collective bargaining and
settlement disputes.
5. Encourgement of workers participative management.
6. Two communication between both the parties
7. Govt should play an active role for promoting industrial peace.It should make
law for the compulsory recognition of a representative union in each
industrial unit.
2.6 Government Machinery
The various methods and machinery under the industrial disputes act can be classified
as under the following heads:
(I) Conciliation
Works committee
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Conciliation officer
Board of conciliation
(II) Arbitration
Court of inquiry
(III) Adjudication
Labour court
Industrial tribunal and
National trinal
2.6.1 Conciliation:
Conciliation, is a form of mediation. Mediation is the act of making active effort to
bring two conflicting parties to compromise. Mediation, however, differs from
conciliation in that whereas conciliator plays only a passive and indirect role, and the
scope of his functions is provided under the law, the mediator takes active part and the
scope of his activities are not subject to any statutory provisions.
Conciliation is the ―practice by which the services of a neutral party are used in a
dispute as a means of helping the disputing parties to reduce the extent of their
differences and to arrive at an amicable settlement of agreed solution.‖
The Industrial Disputes Act, 1947 provides for conciliation, and can be utilised either
by appointing conciliation officers (permanently or for a limited period) or by
constituting a board of conciliation. This conciliation machinery can take a note of a
dispute or apprehend dispute either on its own or when approached by either party.
With a view to expediting conciliation proceeding, time-limits have been prescribed—
14 days in the case of conciliation officers and two months in the case of a board of
conciliation, settlement arrived at in the course of conciliation is binding for such period
as may be agreed upon between the parties or for a period of 6 months and with
continue to be binding until revoked by either party. The Act prohibits strike and lock-
out during the pendency of conciliation proceedings before a Board and for seven days
after the conclusion of such proceedings.
Conciliation Officer:
The law provides for the appointment of Conciliation Officer by the Government to
conciliate between the parties to the industrial dispute. The Conciliation Officer is given
the powers of a civil court, whereby he is authorised to call the witness the parties on
oath. It should be remembered, however, whereas civil court cannot go beyond
interpreting the laws, the conciliation officer can go behind the facts and make
judgment which will be binding upon the parties.
On receiving information about a dispute, the conciliation officer should give formal
intimation in writing to the parties concerned of his intention to commence conciliation
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proceedings from a specified date. He should then start doing all such things as he
thinks fit for the purpose of persuading the parties to come to fair and amicable
settlement of the dispute.
Conciliation is an art where the skill, tact, imagination and even personal influence of
the conciliation officer affect his success. The Industrial Disputes Act, therefore, does
not prescribe any procedure to the followed by him.
The conciliation officer is required to submit his report to the appropriate government
along with the copy of the settlement arrived at in relation to the dispute or in case
conciliation has failed, he has to send a detailed report giving out the reasons for failure
of conciliation.
The report in either case must be submitted within 14 days of the commencement of
conciliation proceedings or earlier. But the time for submission of the report may be
extended by an agreement in writing of all the parties to the dispute subject to the
approval of the conciliation officer.
If an agreement is reached (called the memorandum of settlement), it remains binding
for such period as is agreed upon by the parties, and if no such period is agreed upon,
for a period of six months from the date on which the memorandum of settlement is
signed by the parties to the dispute, and continues to be binding on the parties after the
expiry of the period aforesaid, until the expiry of two months from the date on which a
notice in writing of an intention to terminate the settlement is given by one of the party
or parties to the settlement.
Board of Conciliation:
In case Conciliation Officer fails to resolve the differences between the parties, the
government has the discretion to appoint a Board of Conciliation. The Board is tripartite
and ad hoc body. It consists of a chairman and two or four other members.
The chairman is to be an independent person and other members are nominated in equal
number by the parties to the dispute. Conciliation proceedings before a Board are
similar to those that take place before the Conciliation Officer. The Government has yet
another option of referring the dispute to the Court of Inquiry instead of the Board of
Conciliation.
The machinery of the Board is set in motion when a dispute is referred to it. In other
words, the Board does not hold the conciliation proceedings of its own accord. On the
dispute being referred to the Board, it is the duty of the Board to do all things as it
thinks fit for the purpose of inducing the parties to come to a fair and amicable
settlement. The Board must submit its report to the government within two months of
the date on which the dispute was referred to it. This period can be further extended by
the government by two months.
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2. Court of Inquiry:
In case of the failure of the conciliation proceedings to settle a dispute, the government
can appoint a Court of Inquiry to enquire into any matter connected with or relevant to
industrial dispute. The court is expected to submit its report within six months. The
court of enquiry may consist of one or more persons to be decided by the appropriate
government.
The court of enquiry is required to submit its report within a period of six months from
the commencement of enquiry. This report is subsequently published by the
government within 30 days of its receipt. Unlike during the period of conciliation,
workers‘ right to strike, employers‘ right to lockout, and employers‘ right to dismiss
workmen, etc. remain unaffected during the proceedings in a court to enquiry.
A court of enquiry is different from a Board of Conciliation. The former aims at
inquiring into and revealing the causes of an industrial dispute. On the other hand, the
latter‘s basic objective is to promote the settlement of an industrial dispute. Thus, a
court of enquiry is primarily fact-finding machinery.
2.6.2 Arbitration
On failure of conciliation proceedings, the conciliation officer many persuade the
parties to refer the dispute to a voluntary arbitrator. Voluntary arbitration refers to
getting the disputes settled through an independent person chosen by the parties
involved mutually and voluntarily.
In other words, arbitration offers an opportunity for a solution of the dispute through an
arbitrator jointly appointed by the parties to the dispute. The process of arbitration saves
time and money of both the parties which is usually wasted in case of adjudication.
Voluntary arbitration became popular as a method a settling differences between
workers and management with the advocacy of Mahatma Gandhi, who had applied it
very successfully in the Textile industry of Ahmedabad. However, voluntary arbitration
was lent legal identity only in 1956 when Industrial Disputes Act, 1947 was amended to
include a provision relating to it.
The provision for voluntary arbitration was made because of the lengthy legal
proceedings and formalities and resulting delays involved in adjudication. It may,
however, be noted that arbitrator is not vested with any judicial powers.
He derives his powers to settle the dispute from the agreement that parties have made
between themselves regarding the reference of dispute to the arbitrator. The arbitrator
should submit his award to the government. The government will then publish it within
30 days of such submission. The award would become enforceable on the expiry of 30
days of its publication.
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Voluntary arbitration is one of the democratic ways for setting industrial disputes. It is
the best method for resolving industrial conflicts and is a close‘ supplement to
collective bargaining. It not only provides a voluntary method of settling industrial
disputes, but is also a quicker way of settling them.
It is based on the notion of self-government in industrial relations. Furthermore, it helps
to curtail the protracted proceedings attendant on adjudication, connotes a healthy
attitude and a developed outlook; assists in strengthening the trade union movement and
contributes for building up sound and cordial industrial relations.
2.6.3 Adjudication
The ultimate remedy for the settlement of an industrial dispute is its reference to
adjudication by labour court or tribunals when conciliation machinery fails to bring
about a settlement. Adjudication consists of settling disputes through intervention by
the third party appointed by the government. The law provides the adjudication to be
conducted by the Labour Court, Industrial Tribunal of National Tribunal.
A dispute can be referred to adjudication if hot the employer and the recognised union
agree to do so. A dispute can also be referred to adjudication by the Government even if
there is no consent of the parties in which case it is called ‗compulsory adjudication‘.
As mentioned above, the dispute can be referred to three types of tribunals depending
on the nature and facts of dispute in questions.
These include:
(a) Labour courts,
(b) Industrial tribunals, and
(c) National tribunals.
The procedure, powers, and provisions regarding commencement of award and period
of operation of award of these three bodies are similar. The first two bodies can be set
up either by State or Central Government but the national tribunal can be constituted by
the Central Government only, when it thinks that the adjudication of a dispute is of
national importance. These three bodies are into hierarchical in nature. It is the
Government‘s prerogative to refer a dispute to any of these bodies depending on the
nature of dispute.
(а) Labour Court:
A labour court consists of one person only, who is normally a sitting or an ex-judge of a
High Court. It may be constituted by the appropriate Government for adjudication of
disputes which are mentioned in the second schedule of the Act.
The issues referred to a labour court may include:
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(i)The propriety or legality of an order passed by an employer under the Standing
Orders.
(ii) The application and interpretation of Standing Orders.
(iii) Discharge and dismissal of workmen and grant of relief to them.
(iv) Withdrawal of any statutory concession or privilege.
(v) Illegality or otherwise of any strike or lockout.
(vi) All matters not specified in the third schedule of Industrial Disputes Act, 1947. (It
deals with the jurisdiction of Industrial Tribunals).
(b) Industrial Tribunal:
Like a labour court, an industrial tribunal is also a one-man body. The matters which
fall within the jurisdiction of industrial tribunals are as mentioned in the second
schedule or the third schedule of the Act. Obviously, industrial tribunals have wider
jurisdiction than the labour courts.
Moreover an industrial tribunal, in addition to the presiding officer, can have two
assessors to advise him in the proceedings; the appropriate Government is empowered
to appoint the assessors.
The Industrial Tribunal may be referred the following issues:
1. Wages including the period and mode of payment.
2. Compensatory and other allowances.
3. Hours of work and rest intervals.
4. Leave with wages and holidays.
5. Bonus, profit sharing, provident fund and gratuity.
6. Shift working otherwise than in accordance with the standing orders.
7. Rule of discipline.
8. Rationalisation.
9. Retrenchment.
10. Any other matter that may be prescribed.
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(c) National Tribunal:
The Central Government may constitute a national tribunal for adjudication of disputes
as mentioned in the second and third schedules of the Act or any other matter not
mentioned therein provided in its opinion the industrial dispute involves ―questions of
national importance‖ or ―the industrial dispute is of such a nature that undertakings
established in more than one state are likely to be affected by such a dispute‖.
The Central Government may appoint two assessors to assist the national tribunal. The
award of the tribunal is to be submitted to the Central Government which has the power
to modify or reject it if it considers it necessary in public interest.
It should be noted that every award of a Labour Court, Industrial Tribunal or National
Tribunal must be published by the appropriate Government within 30 days from the
date of its receipt. Unless declared otherwise by the appropriate government, every
award shall come into force on the expiry of 30 days from the date of its publication
and shall remain in operation for a period of one year thereafter.
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CHAPTER 3
LABOUR WELFARE
3.1 Concept of labour welfare
Labour welfare is an important dimension of industrial relation, labour welfare
includes overall welfare facilities designed to take care of well being of employee's
and in order to increase their living standard.It can also be provided by government,
non government agencies and trade unions.
The concept of labour welfare is flexible and elastic and differs widely with time,
region, industry, social values and customs, degree of industrialization, the general
socio – economic development of the people and the political ideologies prevailing at
a particular time. It is also molded according to the age – group, sex, socio – cultural
background, marital and economic status and educational level of the workers in
various industries.
Labour Welfare- Definition
According to the Committee on Labour Welfare, welfare services should mean:
―Such services, facilities, and amenities as adequate canteens, rest and recreation
facilities, sanitary and medical facilities, arrangements for travel to and from place of
work, and for the accommodation of workers employed at a distance from their
homes; and such other services, amenities and facilities, including social security
measures, as contribute to the conditions under which workers are employed.‖
 The employers need welfare activities to discharge their social responsibility,
raise the employees morale use the work force more effectively and to reduce
function with workers and to avoid
Welfare facilities besides removing dissatisfaction help to develop loyalty in
workers towards the organization.
 Welfare may help minimize social evils, such as alcoholism, gambling,
prostitution and drug addiction.
 To create harmonious industrial relationship.
History Of Labour Welfare
 In India the labour welfare started sometime during the 1st
world war (1914-
1918). Till then wellbeing of workers in factories was hardly thought by
anybody.
 Industrial Labour Organization has played a very significant role for labour
welfare.
 Formed by Indian central government and state governments for welfare of
labour in Industries
 Cntd…
 Government has laid down minimum standards for employment and working
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conditions in organizations.
 trade unions and various social organizations also function as agencies for
implementation of labour welfare measures.
3.2 Objectives of Labour Welfare.
 To increase the standard of living of the. Working class The labourer is more
prone to exploitation from the capitalists if there is no standardized way of
looking after their welfare.
 To make the management feel the employees are satisfied about the work and
working conditions.
 To reduce the labour problems in the orgnisaton: There are various problems
affecting the workers, problems like absenteeism, turnover ratio, indebtedness,
alcoholism, etc., which make the labourer further weak both physically and
psychologically. Labour Welfare looks forward to helping the labourer to
overcome these problems.
 To recognize human values Every person has his own personality and needs to
be recognized and developed. It is in the hands of the management to shape
them and help them grow. The management employs various methods to
recognize each one's worth as an individual and as an asset to the organization.
 Labour Welfare helps to foster a sense of responsibiJjty in the industry: A
person works both in a group and as an individual. If the person is given
responsibility he will act better or else he will be only a slave to the direction of
the superiors and will not show any initiative to prove his worth,
 Labour Welfare improves industrial relations and reduces industrial
disputes: Industrial dispute in any industry is a sign of unsatisfied employees.
Labour Welfare measures act as a preventive tool to most of these disputes.
 To retain the employees There should be fixed policies: This calls in to prepare
the policies, to conduct different training programmes, to have various
motivational schemes, to create interest in the job. The employees who feel
secure in an organisation, backed by fixed welfare policies have less chance of
looking for a job elsewhere.
 To show up their positive mind in the work: Positive mind refers to the
development of one's attitudes. This is to change the negative attitude into
positive.
 To influence over other employees: This means Labour Welfare helps to change
one's personality - presentation skills, communication skills, inter-personal
relationships, etc. This is best achieved when their morale is kept high by the
different welfare schemes.
 To increase the bargaining power of the employees: Bargaining means to
systematically extract something from the opponent. The better bargaining
power, the better influence on the opponent. Labour welfare measures like
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formation of works committee, worker's participation, Trade Union, etc., will
surely help them to have better bargaining power.
3.3 Scope of Labor welfare.
Working Environment
Favourable working environment enhances efficiency of workers and includes proper
illumination, safety, temperature, vetilation, sanitation, cleanliness and canteen
facilities.
Workplace sanitation and cleanliness is very important for making workplace
favourable to workers. Following points should be considerdered to make workplace
favourable to workers.
 Proper ventilation, lighting, temperature, cleanliness, seating arrangements etc.
 Proper safety measures for workers should be there.
 Sufficient urinals, lavatories and bathing facilities should be provided and cleaned
regularly.
 Proper gardening and cleanliness of open spaces.
 Pure drinking water should be provided.
 CantSeenservices.
Healthfacilities
 Health center should be provided within factory.
 Ambulance service should be provided within factory in case of any emergency.
 Free medical checkup of workers and health and diet counselling of workers.
 Availability of Doctor inside the factory for emergency.
 Women and child welfare work.
 Recreation facilities inside the organization
 Education and library services
Nature Of Welfare
 Schemes of labour welfare shall be updated time to time according to needs of
workers.
 Labour welfare provides facilities in addition to regular wages and other
economic benefits.
 Employers, government, NGOs etc. introduce labour welfare measures.
 Labour welfare provides facilities which improves workers work-life balance.
3.4 Need of Labour welfare
 The employers need welfare activities to discharge their social responsibility,
raise the employees morale use the work force more effectively and to reduce
function with workers and to avoid
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Welfare facilities besides removing dissatisfaction help to develop loyalty in
workers towards the organization.
 Welfare may help minimize social evils, such as alcoholism, gambling,
prostitution and drug addiction.
 To create harmonious industrial relationship.
Approaches to labour welfare
 Approaches to labour welfare gives a clear idea about the attitudes, beliefs
and traditions applied by the labour welfare agencies.
 Many organisations are becoming aware of the welfare facilities being
provided to its employees.
 employers are establishing welfare standards voluntarily, willingly an
enthusiastically.
 Welfare benefits not only extended to self but the society also.
 Many approaches have been designed in this perspective.
I) The Policing Theory
 This theory is basically meant for making the employees and the workers
availed with the basic facilities needed. E.g- latrines, drinking water, enough
rest and lunch intervals, etc.
 In this approach the government has introduced the practices to control the
exploitation of workers by their management/ employer. E.g- heavy work
load and less payments, very small time intervals, no freedom of speech, etc.
 In case of non completion of the above, the management is liable to get a
severe punishment.
II) The religion Theory
 This theory believes in two key approaches:-
 The Investment. & The Atonement ( punishment)
 The Investment theory explains the welfare benefits provided to the workers
is the current Investment made for future progress.
 ―Man is a religious animal‖
 ―Raw fruit today, flourish to tomorrow.‖
 The atonement approach says,
 If the employees/workers are not getting availed with the benefits, it is a part
of there sins in the past.. They need to be atone for that purpose.
III) Philantropic approach
 This is a benevolent approach which has a keen interest in ―giving strategy‖.
 Provisions for good conditions of work, day-care facilities for children,
canteens, washing facilities. (In regards to the employees)
 And rehabilitation of disabled people, working boys/girls hostel facilities,
donations to NGO‘s,
 Rewards to the educational institutions, etc.
 This theory is only encouraged for the well being of internal and external
environment.
IV) Paternalistic Approach
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 In this theory, the owner, occupier or the employer, holds the funds of the
Industry in a trust.
 This trust consist of board or trust members, and any amount to be spent in
favor of the employees and the society is first being taken in discussion.
 It creates a good moral for the internal and external envoirnment.
 Also known as the trusteeship theory of labour welfare.
 V) The Placating theory
 This theory mainly responds to the peaceful measures applicable for the
workers and employees.
 Application of this theory is basically meant for the organized and
committable/ enthusiastic.
 This theory enables the employees to be pleased and oblige with the provided
welfare benefits.
 VI) Public Relations Theory
 This theory basically focuses on the attraction or goodwill for the industry.
 In this theory the welfare benefits are directly related to the impression of the
Industry.
 Impression with the point of view of internal and external envoirnment.
 E.g- the In -house employees and the visitors too.
 VII) Functional Theory
 This theory believes the high productivity/ outcome of employees, by
providing them the welfare benefits.
 Approach expects the results in the employees/workers efficiency and
effectiveness on work.
 This concepts is commonly used in nature.
 Also known as the efficiency theory of labour welfare.
VIII ) Social theory
 This theory believes in well being of the society with the employees.
 Various provisions related to the society are to be established with this theory.
 Therefore this theory results in enhancing the condition / state of the society .
3.5 Voluntary welfare activities.
Personal Health Care (Regular medical check-ups): Some of the companies provide
the facility for extensive health check-up
Flexi-time: The main objective of the flextime policy is to provide opportunity to
employees to work with flexible working schedules. Flexible work schedules are
initiated by employees and approved by management to meet business commitments
while supporting employee personal life needs
Employee Assistance Programs: Various assistant programs are arranged like external
counseling service so that employees or members of their immediate family can get
counseling on various matters.
Harassment Policy: To protect an employee from harassments of any kind, guidelines
are provided for proper action and also for protecting the aggrieved employee.
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Maternity & Adoption Leave – Employees can avail maternity or adoption leaves.
Paternity leave policies have also been introduced by various companies.
Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance
coverage of employees for expenses related to hospitalization due to illness, disease or
injury or pregnancy.
Employee Referral Scheme: In several companies employee referral scheme is
implemented to encourage employees to refer friends and relatives for employment in
the organization.
3.6 Various statutory welfare activities
Statutory welfare measures mainly include welfare facilities provided within the
precincts of an industrial establishment. They form part of the employers‟ statutory
obligations. All welfare states provide welfare to the labour by securing and
protecting social order to ensure social, economic and political justice.
PROVISIONS REGARDING THE WELFARE OF WORKERS
Washing. In every factory adequate and suitable facilities for washing shall be
provided and maintained. They shatI be conveniently accessible and shall be kept
clean. There must be separate provisions for male and female workers.-Sec. 42.
Storing and drying. The State Government may make rules requiring the provision of
suitable facilities for storing and drying clothing.-Sec. 43.
Sitting. Sitting facilities must be provided for workers who have to work in a standing
position. so that they may take rest when possible. When work can be done in a sitting
position efficiently the Chief Inspector may direct the provision of sitting
arrangements. Sec. 44.
First aid. Every factory must provide first aid boxes or cupboard. They must contain
the prescribed materials and they must be in charge of persons trained in first aid
treatment. Factories employing more than 500 persons must maintain an ambulance
roam containing the prescribed equipment and in charge of the prescribed medical and
nursing staff-Sec. 45.
Canteens. Where more than 250 workers are employed. the state Government may
require the opening of canteen or canteens for workers. Rules may be framed
regarding the food served. its management etc.,..-Sec.
Shelters. In every factory where more than 150 workers are employed there must be
provided adequate and suitable shelters or rest. rooms and a lunch room (with drinking
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water supply) where workers may eat meals brought by them. Such rooms must be
sufficiently lighted and ventilated and must be maintained in a cool and clean
condition~. The standards may be fixed by the State Government. -Sec. 47
Creches. In every factory where more than 30 women a employed, a room shall be
provided for the use of the children (below 6 years) of such women. The room shall be
adequate size. well lighted and ventilated, maintained in a clean and sanitary condition
and shall be in charge of a woman trained in the care of children and infants. The
standards shall be laid down by the State Government.Sec. 48.
Welfare officers. Welfare officers must be appointed in every factory where 500 or
more workers are employed. The State Government may prescribe the duties,
qualifications etc. of such officers. Sec. 49.
Rules. The State Government may make rules regarding the welfare of workers.-Sec.
50.
NON STATUTORY SCHEMES
Many non statutory welfare schemes may include the following schemes:
Personal Health Care (Regular medical check-ups)
Some of the companies provide the facility for extensive health check-up
Flexi-time
The main objective of the flextime policy is to provide opportunity to employees to
work with flexible working schedules. Flexible work schedules are initiated by
employees and approved by management to meet business commitments while
supporting employee personal life needs
Employee Assistance Programs
Various assistant programs are arranged like external counseling service so that
employees or members of their immediate family can get counseling on various
matters.
Harassment Policy
To protect an employee from harassments of any kind, guidelines are provided for
proper action and also for protecting the aggrieved employee.
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Maternity & Adoption Leave
Employees can avail maternity or adoption leaves. Paternity leave policies have also
been introduced by various companies.
Medi-claim Insurance Scheme
This insurance scheme provides adequate insurance coverage of employees for
expenses related to hospitalization due to illness, disease or injury or pregnancy.
Employee Referral Scheme
In several companies employee referral scheme is implemented to encourage
employees to refer friends and relatives for employment in the organization.
5 Different Categories of Labour Welfare
Some of the major categories of labour welfare are: (1) Intra-mural Facilities (2) Extra-
mural Facilities (3) Statutory Facilities (4) Mutual Facilities and (5) Voluntary.
It is very difficult to classify the welfare activities into certain broad categories.
(1) Intra-mural Facilities:
The facilities provided inside the factory are known as intra-mural facilities. These
facilities include activities relating to minimisation of industrial fatigue, provision of
safety measures like fencing and covering of machines, good layout of the plant and
machinery, sufficient lighting conditions, provision of first aid appliances etc.
Provisions of such facilities are also obligatory in all industrial establishments all over
the world.
(2) Extra-mural Facilities:
Facilities offered to the workers outside the factory are known as extra-mural facilities.
They include better housing accommodations, indoor and outdoor recreation sports,
educational facilities etc. The provision of these facilities is voluntary. Earlier, due
attention was not given to the provision of extra-mural facilities to the workers but now
it is realised that these facilities are very important for the general welfare and
upliftment of the workers.
(3) Statutory Facilities:
Under this category, welfare facilities are provided according to the labour legislations
passed by the Government. The nature and coverage of these facilities vary from
country to country. Again these facilities may be either intra-mural facilities or extra-
mural facilities. These facilities must be provided by all the employers and cannot be
ignored. Any contravention of the statutory provisions shall render the employer
punishable under the Act concerned.
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The National Commission of Labour has divided all the statutory measures under
two distinct heads:
1. Facilities which have to be provided irrespective of the size of the establishment e.g.,
drinking water.
2. Facilities which are to be provided subject to the employment of a specified number
of persons, e.g., creches.
(4) Mutual Facilities:
These facilities are usually outside the scope of the statutory facilities. These activities
are voluntarily undertaken by the workers themselves for their own interest. As such the
employer has no say in it.
(5) Voluntary:
The facilities which are voluntarily provided by the employers come under this
category. Hence these are not statutory. No doubt, the activities under this category
ultimately lead to increase in the efficiency of workers.
3.7 Labour welfare funds
Labour welfare funds are created as a measure of social security provided to the
working class. Social security is one of the working class. Social security is one of the
three categories of labour welfare activities classified by the study group appointed by
the Government of India to examine the labour welfare activities
The Government constitutes Labour Welfare Fund, as per section 3, to which the
following are credited to –
a) All Unpaid Accumulations due to workers
b) All fines realised from the workers
c) Deduction made under the proviso to Sub-section(2) of section 9 of the Payment of
Wages Act,1936 and the proviso to Sub-section (2) of section 36 of the Tamil Nadu
Shops and Establishments Act, 1947.
d) Contribution from Employees, Employers and Government,
e) Any interest by way of penalty, paid under Section 14 of the Tamil Nadu Labour
Welfare Fund Act, 1972.
f) Any Voluntary Donation.
g) Any amount raised by the Board from other sources to augment the resources of the
Board.
h) Any fund transferred under Sub-section 5 of Section 17 of the Tamil Nadu Labour
Welfare Fund Act, 1972.
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i) Any sum borrowed under Section 18 of Tamil Nadu Labour Welfare Fund Act,1972
j) Any unclaimed amount credited to the Government in accordance with the rules
made under the Payment of Wages Act, 1936 and Minimum Wages Act, 1948
. k) Grants or Advances made by the Government.
3.8 Education and training programme.
Employee’s Education:
In the word of William Flayed, ―Worker Education‖ is an attempt on the part of
organized labour to educate its own members under an educational system in which the
workers prescribe the courses of instructions, select the teachers and in a considerable
measure, furnish the finance.‖
Features of employees education
i.The scope of workers‘ education is much wider than that of trade union education but
is narrower than that of adult education.
ii.The workers‘ education is designed to create trade union consciousness among
workers, besides making them good citizens and training them to understand their
status, rights and responsibilities.
iii.In workers‘ education, the workers themselves prescribe the curriculum and select
the teachers who have full sympathy with the working class.
iv.The institutions providing workers‘ education are owned, financed and managed by
the workers.
v.It is aimed at increasing the bargaining power of trade unions and making the working
class more sensible and cooperative.
vi.It differs from vocational and professional education, for its main aim is to train a
worker for his group advancement and increasing individual creativity, whereas
vocational and professional education aims at individual development.
vii.The approach in workers‘ education is psychological and philosophical.
viii.It includes general education, vocational education, technical education, social
education and training in trade unionism.
The Director General of Employment and Training (DGET) has designed a number of
training procedures are
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The Board has developed a need based, three tier training programme for education
officers, workers and teachers. In first state education officer are trained. The period
or training is four months. Then they give training for different regional centres.
Second stage is to get selected workers trained as worker teachers at the regional and
sub -regional centres by the educational officers. The duration of training programme
is three months.
WorkersEducationScheme
Aims and Objectives
 It is important for Industrial peace and Harmony, healthy Management-
labour relations.
 Develop Effective trade unions through better trained officials and more
enlightened members.
 Enhance the leadership skills which enables the worker in his development.
 Increase the total labour mass literacy.
 Better understanding of the problem, with effective solutions
 To fulfill the Organisations requirements through proper responsibility
handling.
 The pre-condition of workers education literacy.
 Important consideration at the present stage of developing country.
 To understand the workers privileges, rights and obligations.
 Time-to-time training programs to upgrade the workers knowledge.
 Minimize the Industrial Accidents and other mishaps on the shop floor.
 National Commission on Labour, has said that the labour‘s/ workers
education should have the following key areas to be studied:-
 This should employee independent, intelligent and innovative.
 He should be responsible, alert, and self-disciplined.
 Also Guided the National trade union centers to arrange for the quality
programs with the Collaboration with some of the universities and
Institutions.
Craftsmens Training Programme.
 To promote the efficiency of craftsmen
 To conduct various types of test for selection of craftsmen trainees
 The duration of the course is one to two years
 National trade certificate is issued for successful candidates
Craft Instructors Training.
Education- ITI or diploma is required
Advanced Vocational Training System.
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To give training to advanced skill workers &technicians.
Foremans Training.
For the training of foreman an institute was set up
Training is provided to the existing and potential shop foremen and supervisors in
theoretical and managerial skills and workers from industry in advanced technical skills
Apprenticeship Training Scheme.
 Apprenticeship act,1961
 Employers are required to engage apprentices
Part Time Training for Industrial Workers.
To conduct part time evening classes are organized to improve the standards of
working
Vocational Training Programme for Women.
It includes instructor training,basic training and advanced training in selected trades
particularly suitable for women
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UNIT 4
INDUSTRIAL SAFETY
4.1 Causes of Accidents
Accident:
According to Worker‘s Compensation Act, 1923, ―An occurrence mishap or untoward
event which is not expected or designed for and arising out of and in the course of
employment of an industrial worker.‖
Industrial Injury:
According to Factories Act, 1948, ―A Personal Injury to an employee which has been
caused by an accident or an occupational disease and which arises out of or in the
course of employment and which could entitle such employee to compensation under
Workers Compensation Act, 1923.‖
7 Most Common Causes of Workplace Accidents
Shortcuts
Humans are notoriously lazy, so taking shortcuts is a rather common practice in all
walks of life, not necessarily work alone. However, when workers take shortcuts at
work, especially when they are working around dangerous machinery or lethal
chemicals, they are only exposing themselves to a potential catastrophe. Simply put,
shortcuts that are taken on the job are not actually shortcuts. They are simply increasing
your risk of injury, or worse, death.
Overconfidence
Confidence is always a great thing to have, but there is also such a thing as too much
confidence. When workers walk into work everyday with the attitude that, ―It will never
happen to me‖, they are setting an attitude that leads to incorrect procedures, methods,
and tools while working. Be confident, but remember that you are not invincible.
Poor, or Lack Of Housekeeping
Whenever someone walks through your workplace, they can get a pretty good idea of
your attitude towards workplace safety by just looking at how well you‘ve kept up your
area. Housekeeping is one of the most accurate indicators of the company‘s attitude
towards production, quality, and worker safety. A poorly kept up area leads to hazards
and threats everywhere. Not only does good housekeeping lead to heightened safety,
but it also sets a good standard for everyone else in the workplace to follow.
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Starting a Task Before Getting All Necessary Information
The quickest way to get a job done is to do it right the first time. To do it right the first
time, you need to make sure that you have any and all pertinent information relating to
the task you will be performing. Workers who begin a job with just half the
information, or half the instructions, are essentially doing the job while blind.
Remember this; it‘s not stupid to ask questions, it is stupid not to.
Neglecting Safety Procedures
This is probably the worst thing that any employee at any level in the organization can
do. Deliberately neglecting set safety procedures in the workplace doesn‘t just endanger
yourself, but it endangers the workers around you as well as the company as a whole.
Casually following safety procedures doesn‘t work either. You are paid to follow
workplace safety procedures, not your own.
Mental Distractions
Everyone has a life outside of the workplace, and sometimes life can take dips and turns
that affect your emotions and your mood negatively. However, as harsh as it sounds,
workers cannot let mental distractions from their personal lives affect their performance
at work. Not only will they become less aware of their surroundings and less safe, but
they will also become less productive, costing the company time and money.
Types of Industrial Accidents
Industrial accidents can occur in many different industries. From mining to
construction, each industry has its unique challenges and hazards.
Even with strict state and federal regulations, workplace safety can often depend on
individual employers and how seriously they take safety in the workplace.
Construction Accidents
Construction sites are one of the most dangerous places to work. Despite strict
regulations, workers are often seriously injured.
Chemical Plant Accidents
Industrial plants often house combustible chemicals that are either the byproducts of
manufacturing, or the basis for creating new chemicals. Regardless, exposure to
chemicals is a real and everyday danger that plant workers face. Click here to read
more about plant accidents.
Industrial Plant Accidents
Industrial plants such as fertilizer plants have been in the news of late for huge
explosions that have resulted in numerous fatalities. Safeguarding every aspect of these
plants is an expensive proposition, and oftentimes employers cut corners at the expense
of employee safety.
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Mining Accidents
Mines are notoriously dangerous places to work. Not only are miners more to collapses
and the injuries that can result, but they are also subjected to dust, chemicals, and other
hazardous materials.
4.2 Preventing Industrial Accidents
The organization should have strong voluntary machinery for the prevention of
accidents and should follow strictly the guidelines issued by the Government. The
machinery for prevention of accident and can be studied under heads (a) voluntary
machinery and (b) regulatory machinery.
New techniques in accident prevention
Ergonomics
Functional anatomy
Physiology
Engineering
Psychology
Damage control
Industrial hygiene Department
Industrial health programme
General safety Rules
5 Best Practices to Prevent Workplace Accidents
Shortcuts & Shortcomings
It's natural to want to get the job finished on schedule -- or even ahead of time -- but
with a "get it done quick" attitude, accidents happen. Don't take shortcuts -- stick to
the instructions and work with diligence and awareness of your surroundings. Also,
if there are shortcomings in the instructions, don't begin the work until they are
clarified and all your questions are answered! You must always be comfortable and
familiar with the procedure before commencing any work.
Safety in Transit
According to OSHA, workplace-driving accidents cost employers an average of $60
billion a year. Make sure that all company vehicles are inspected each month and
necessary repairs are made as soon as possible. Before driving a company vehicle,
check break lights, turn signals, tire pressure and amount of gas in the tank.
For The Employer
OSHA's "Work-Related Roadway Crashes: Prevention Strategies for Employers"
is an excellent resource, filled with driving strategies, policies and programs to
implement in your workplace.
1.Weather the Weather
Both inside and outdoor work may expose you to extreme conditions. Whether very
hot or very cold, both ends of the temperature spectrum can impact your health.
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a.Cold: Dress in layers and make sure you properly cover your head, feet, hands and
face -- these parts of your body are most prone to frostbite. Always keep a change of
clothes at work in case your clothes get wet.
For The Employer
If your workers are exposed to cold conditions, install on-site heating devices.
b.Heat: Wear loose-fitting clothes, take frequent breaks in a cool rest area and get
plenty of fluids. If you have preexisting medical conditions,consult your doctor before
working in extreme
c. heat.
For The Employer
If your workers are exposed to extreme heat, make sure there is adequate ventilation
and airflow -- open windows and utilize fans.
Make PPE a VIP
Personal Protective Equipment is crucial to prevent injury, so make sure you wear it…
and wear it properly! This includes:
. Goggles and face protection to protect from flying particles, chemicals or caustic
liquids.
a.Gloves to prevent cuts, scrapes, punctures, burns, chemical absorption or
temperature extremes.
b.Hard hats to safeguard against falling objects.
c.Safety shoes for work areas where heavy objects could be dropped and injure the
feet.
d.Ear muffs or ear plugs to protect against hearing damage in noisy workplaces.
e.
For The Employer
Providing the safety equipment isn't enough -- you must make sure that your
workers know how to use it properly. Provide adequate PPE training.
Shipshape Safety: -- Many workers don't realize the negative consequences of poor
housekeeping. If an unkempt workplace becomes the norm -- paper, debris, clutter and
spills are accepted as "familiar" -- then more serious health and safety hazards are
overlooked and injuries become more probable. Housekeeping goes beyond personal
cleanliness -- it also includes keeping work areas orderly, taking care of any slip-and-
trip hazards as soon as they arise and removing waste and fire hazards regularly.
Assess your work environment with a critical eye and pay attention to the layout of the
workplace, aisle marking, adequacy of storage and maintenance. Report dangers or
deficiencies right away!
For The Employer
OSHA's Good Housekeeping in Industry not only explains the significance and
benefits of good housekeeping, but also provides a good housekeeping checklist and
elements of a good housekeeping campaign.
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4.3 Safety provisions
The statutory safety provisions as applicable to factories in India are found in sections
21 through 40 of the Factories Act, 1948. A detailed version of each of these sections
are listed below. The number mentioned in the right hand extreme refers to the actual
number of section as found in the Act.
Section 21. Fencing of machinery
Section 22. Work on or near machinery in motion
Section 23. Employment of young persons on dangerous machines
Section 25. Casing of new machinery
Section 27. Hoists and lifts
Section 28. Lifting machines, chains, ropes and lifting tackles
Section 29. Revolving machinery
Section 30. Pressure plant
Section 31. Floors, stairs and means of access
Section 32. Pits, sumps, openings in floors, etc.
Section 33. Excessive weights
Section 34. Protection of eyes
Section 35. Precautions against dangerous fumes, gases, etc.
Section 36 a. Precautions regarding the use of portable electric light
Section 37. Explosive or inflammable dust, gas, etc
Section 38. Precautions in case of fire
Section 39. Power to require specifications of defective parts or tests of stability
Section 40. Safety of buildings and machinery
Section 40 a. Maintenance of buildings
Section 40 b. Safety officers
Section 41. Powers to make rule to supplement
PROVISIONS REGARDING THE SAFETY OF WORKERS
Sections 21 to 40A, 40B and 41 of the Act lay down rules for the purpose of
securing the safety of workers. Summary of the provisions of the Factories Act
regarding the safety of the workers are stated below: (Sections 2l to 41) .
1. Fencing ot machinery. All dangerous machinery must be securely fenced e.g.,
moving .parts- of prime movers and flywheels connected to every prime mover. electric
generators. etc.-Sec. 2l.
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2. Work on or near machinery in motion. Work on or near machinery in motion
must be carried out only by specially trained adult male workers wearing tightly fitting
c1othes.-Sec. 22.
3. Employment of young persons on dangerous machines. No young person
shall work at any danger()us machine' unless he has been specially instructed as to the
dangers and the precautions to be observed. has received sufficient training about th~
work. and is under the supervision of some person having thorough knowledge and
experience of the machine.-Sec. 23.
4. Striking gear and devices for cutting off power. In every factory suitable
devices for cutting off power in emergencies from running machinery shall be
provided and maintained in every workroom.~. 24.
5. Self-acting machines. Moving parts of a self-acting machine must not be
allowed to come within 45 cms. of any fixed structure which is not part of the
machine.-Sec. 25.
6. Casing of new machinery. In all machinery installed after the commencement
of the Act. certain parts must be sunk, encased or otherwise effectively guarded e.g..
set screw. bolt. toothed gearing etc. -sec. 26.
7. Women and children near cotton Openers. Women and children must not be
allowed to work near cot/On openers, except In certain cases.-Sec. 27
8. Hoists, lifts, chains etc, Every hoist and lift must be so constructed as to be
safe. There are detailed rules as to how such safety is to be secured. There are
similar provisions regarding lifting machines. chains, ropes and lifting tackle
.Sec. 28. 29.
9. .Revolving machinery. Where grinding is . carried on the maximum safe
working speed of every revolving machinery connected therewith must be notified.
Steps must be taken to see that the safe speed is not exceeded.-Sec. 30.
10. Pressure plant. Where any operation is carried on at a pressure higher than
the atmospheric pressure, steps must be taken to ensure that the safe working pressure
is not exceed~cL-.sec. 31.
. 11. Floors, stairs and means of access. All floors, steps, stairs, passage and
gangways shall be of sound construction and properly maintained. Handrails shall be
provided where necessary. Safe means of access shall be provided to the place where
the worker will carry on any work.-Sec. 32.
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12. Pits, sumps. openings in floors etc. Pits. sumps. openings in floors etc. must be
securely covered or fenced.-Sec. 33.
13. Excessive weights. No worker shall be made to carry a load so heavy as to cause
him injury.-8ec. 34.
14. Protection of eyes. Effective screen or suitable goggles shall be provided to
protect the eyes of the worker from fragments thrown off in course of any
manufacturing process and from excessive light if any.-Sec. 35.
15. Precautions against dangerous fumes. No person shall be allowed to enter
any chamber. tank etc. where dangerous fumes are likely to ,be present. unless it is
equipped with a manhole or other means of going out. In such space no portable electric
light of more than 24 ,volts shall be used. Only a lamp or light of flame proof
construction can be used in such space. For people entering such space suitable
breathing apparatus, reviving apparatus etc. shall be provided. Such places shall be
cooled by ventilation before any person is allowed to enter.-8ecs. 36 and 36A.
16. Explosive or inflammable gas etc. where a manufacturing process produces
inflammable gas. dust. fume. etc. steps must be taken to enclose the machine
concerned, prevent the accumulation of substances and exclude all possible sources of
ignition. Extra precautionary measures are to be taken where such substances are
worked at greater than the atmospheric. pressure.-Sec. 37.
17. Precaution in case of fire. Fire escapes shall be provided. Windows and
doors shall be constructed to open outwards. The means of exit in case of the fire shall
be clearly marked in red letters. Arrangements must be made to give warning in case
or fire -sec. 38
18. Specifications of defectives etc. and safety of buildings and machinery. If any
building or machine is in a defective or dangerous condition, the inspector of factories
can ask fer the holding of tests to determine how they can be made safe. He can also
direct the adoption of the measure necessary to make them safe. In case of immediate
danger, the use of the building or machine can be prohibited.-Secs. 39. 40.
19. Maintenance of Buildings. If the Inspector of Factories thinks that any
building in a factory, or any. part of it. is in such a state of disrepair that it is likely to
affect the health and welfare of the workers. he may serve on the occupier or manager
or both in writing specifying the measures to be done before the specified date. Sec.
4OA.
Safety Officers. The State Government may notify to the occupier to employ a
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number of Safety Officers in a factory (i) wherein one thousand or more workers are
ordinarily employed. or (ii) wherein any manufacturing process or operation which
involves the risk of bodily injury, poisoning. disease or any other hazard to health of
the persons employed in the factory .-Sec. 40B.
Rules. The State Government may make rules providing for the use of such further
devices for safety as may be necessary. Sec. 41.
4.4 Industrial health and hygiene
Meaning
The Joint I.L.O AND W.H.O committee on organizational health held in 1950 defined
organizational health as
 The promotion and maintenance of physical, mental and social well-being of
workers in all occupations.
 Preventing among workers of ill health caused by the working conditions.
 Protection of workers in their employment from risk factors adverse to health.
 Placing and maintenance of worker in an occupational environment adapted to
his physical and psychological equipment.
Importance of Industrial Health
 As the large member of workers spend a great deal of their time in an
organization, their environment is not usually conducive to a health life.
 Malnutrition, insanity and psychological conditions and the stress and strain
under which they work is very injurious to their health.
 The symptoms of bad health are a high rate of absenteeism and turnover and
indiscipline, poor performance and low productivity.
 Industrial health programmes are very useful for reduction in the rate of labour
turnover, absenteeism, accidents, lower performance and occupational diseases.
PROVISIONS REGARDING THE HEALTH OF WORKERS
Sections 11 to 20 of the Act contain certain provisions intended to ensure that the
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conditions under .which work is carried on in factories do not affect the health of the
workers injuriously. The summary of the provisions are explained below :
Summary of the provisions of the Factories Act. relating -to the health of workers are
stated below.
1. Cleanliness. Every factory shall be kept clean and free from dirt, and the outflow of
drains etc. The floors must be cleaned. Drainage shall be provided. Inside walls,
partitions and ceilings must be repainted at least once in five years. When washable
water paint is used they must be painted once every three years and washed at least
every period of six months.-Sec. 11,' as amended in 1976.
2. Disposal of wastes and effluents. The waste materials produced from the
manufacturing process must be effectively disposed off-Sec. 12.
3. Ventilation 'and Temperature. There must be provision for adequate ventilation
by the circulation of fresh air: The temperaturemust be kept at a comfortable level. Hot
parts of machines must be'separated and insulated.-Sec. 13.
4. Dust and Fume. If the .manufacturing process used. gives off injurious or offensive
dust and fume steps must be taken so that they are not inhaled or accumulated. The
exhaust fumes of internal combustion engines must be conducted outside the factory.-
-Sec. 14.
5. Artificial humidification. The water used for this purpose must be pure. It must be.
taken from some source of drinking water supply. The State Government can frame
rules .regarding the process of humidification etc.-8ec. 15.
.
6. OverCrowding. There must be no overcrowding in a factory. In factories existing
before the commencement of the Act there must be at least 350 c.ft. (~r 55 cubic
metres) of space per worker. For factories built afterwards, there must be at least 500
c.ft. (or 75 cubic metres) of space. In calculating the space, an account is to be taken
of space above 14 ft. (or 5 metres) from the floor.-Sec. 16.
7. Lighting. Factories must be well lighted. Effective measures must be adopted to
prevent glare or formation of shadows which might cause eyestrain.-sec. 17.
8. Drinking water. Arrangements must be made to provide a sufficient supply of
wholesome drinking water. All supply' points of such water must be marked "drinking
water". No such points shall be within 20 ft. (or 7.5 metres) of any latrine, washing
place etc. Factories employing more than 250 workers must cool the water during the
hot weather.-Sec. 18.
.
9. Latrines and Urinals. Every factory must provide' sufficient number of latrines
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Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)
Ba7034 industrial relations and labour welfare (1)

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Ba7034 industrial relations and labour welfare (1)

  • 1. BA7034 Industrial Relations and Labour welfare 3 BA7034 INDUSTRIAL RELATIONS AND LABOUR WELFARE LT P C UNIT I INDUSTRIAL RELATIONS 7 Concepts – Importance – Industrial Relations problems in the Public Sector – Growth of Trade Unions – Codes of conduct. UNIT II INDUSTRIAL CONFLICTS 12 Disputes – Impact – Causes – Strikes – Prevention – Industrial Peace – Government Machinery – Conciliation – Arbitration – Adjudication. UNIT III LABOUR WELFARE 8 Concept – Objectives – Scope – Need – Voluntary Welfare Measures – Statutory Welfare Measures – Labour – Welfare Funds – Education and Training Schemes. UNIT IV INDUSTRIAL SAFETY 9 Causes of Accidents – Prevention – Safety Provisions – Industrial Health and Hygiene – Importance – Problems – Occupational Hazards – Diseases – Psychological problems – Counseling – Statutory Provisions. UNIT V WELFARE OF SPECIAL CATEGORIES OF LABOUR 9 Child Labour – Female Labour – Contract Labour – Construction Labour – Agricultural Labour – Differently abled Labour –BPO & KPO Labour - Social Assistance – Social Security – Implications. TOTAL: 45 PERIODS TEXT BOOKS 1. Mamoria C.B. and Sathish Mamoria, Dynamics of Industrial Relations, Himalaya Publishing House, New Delhi, 2007. 2. Arun Monappa, Ranjeet Nambudiri, Patturaja Selvaraj. Industrial relations & Labour Laws. TataMcGraw Hill. 2012 1. Ratna Sen, Industrial Relations in India, Shifting Paradigms, Macmillan India Ltd., NewDelhi, 2007. 2. C.S.Venkata Ratnam, Globalisation and Labour Management Relations, Response Books,2007. 3. Srivastava, Industrial Relations and Labour laws, 4. P.R.N Sinha, Indu Bala Sinha, Seema Priyardarshini Shekhar. Industrial Relations, Trade Unions and Labour Legislation. Pearson. 2004 www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 2. BA7034 Industrial Relations and Labour welfare 4 CONTENTS CHAPTER TOPICS PAGE NO 1 INDUSTRIAL RELATIONS 5-17 1.1 Concepts 1.2 Importance 1.3 Industrial relations problems in the public sector 1.4 Growth of Trade unions 1.5 Codes of conduct 2 INDUSTRIAL CONFLICTS 18-28 2.1 Disputes 2.2 Impact 2.3 Causes 2.4 Strikes 2.5 Industrial peace 2.6 Government machinery 2.6.1 Conciliation 2.6.2 Arbitration 2.6.3 Adjudication 3 LABOUR WELFARE 29-40 3.1 Concepts 3.2 Objectives 3.3 Scope 3.4 Need 3.5 Voluntary measures 3.6 Statutory welfare measures 3.7 Labour welfare funds 3.8 Education and Training programme 4 INDUSTRIAL SAFETY 41-54 4.1 Causes of accidents 4.2 Prevention 4.3 Safety provisions 4.4 Industrial health 4.4.1 Hygenie &importance,problems 4.5 Occupational Hazards 4.6 Diseases 4.7 Psychological problems 4.8 Counselling 4.9 Statutory provisions WELFARE OF SPECIAL CATEGORIES OF LBOUR 55-66 www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 3. BA7034 Industrial Relations and Labour welfare 5 5 5.1 Child labour 5.2 Female labour 5.3 Contract labour 5.4 Construction labour 5.5 Agricultural labour&differently abled labour 5.6 BPO&KPO Labour 5.7 Social assistance 5.8 Social security QUESTION BANK 67-101 UNIVERSITY QUESTION PAPERS 101- 109 www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 4. BA7034 Industrial Relations and Labour welfare 6 CHAPTER 1 INDUSTRIAL RELATION 1.1 Concepts of Industrial Relations. Industrial Relations The Term ―Industrial Relations‖ commonly denotes ―employee – employee relations‖, in both organized and unorganized sectors of the economy. Industrial Relations (also known as labour – management relations or labour relations) will be treated here as the study of employee – employer relationship and the outcome of such relationship. Definition According to Kapoor defined as the ―Industrial Relations is a developing and dynamic concept and such no more limits itself merely to the complex relations between the unions and management but also refers to the general web of relationships normally obtaining between employees – a web much more complex than the single concept of labour capital conflict‖. Features of Industrial Relations  Industrial Relation do not emerge in vacuum they are born of employment relationship in an industrial setting. Without the existence of the two parties, i.e., labour and management, this relationship cannot exist.  It provides the environment for industrial relations.  Industrial Relation are characterized by both conflict and co-operations.  The focus of Industrial Relations in on the study of the attitudes, relationships, practices and procedure developed by the contending parties to resolve or at least minimize conflicts. The main objectives of industrial relations system are  To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.  To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.  To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.  To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 5. BA7034 Industrial Relations and Labour welfare 7 individuals personality may grow its full stature for the benefit of the industry and of the country as well.  To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.  To improve the economic conditions of workers in the existing state of industrial managements and political government.  Socialization of industries by making the state itself a major employer  Vesting of a proprietary interest of the workers in the industries in which they are employed. Scope of industrial relations  Protecting the interest of the employees  Providing reasonable wages to employees  Providing safe and hygienic working conditions  Providing social security measures  Maintaining strong Trade Unions  Collective bargaining Industrial peace and democracy could be developed and maintained by:  Settlement of industrial disputes through mutual understanding and agreements  By evolving various statutory measures  By formation of various machineries such as works committee, boards of conciliation labour courts etc.  Workers participation in management  Recognizing human rights The main aspects of Industrial Relations are:-  Labor Relations, i.e. relations between union and management  Employer-employees relations, i.e. relations between management and employees  Group relations, i.e. relations between various groups of workmen  Community or Public relations, i.e. relations between industry and society.  Promotions and development of healthy labor-managements relations.  Maintenance of industrial peace and avoidance of industrial strife  Development of true industrial Democracy 1.2 Importance of industrial relation www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 6. BA7034 Industrial Relations and Labour welfare 8  Uninterrupted production  Reduction in Industrial Dispute  High morale - Industrial relation improves the morale of employees  Mental revolution  Economic growth and Development  Discourages unfair practices  Enactment of statutory provisions Uninterrupted Production  To ensure continuity of production.  continuous employment for all from manager to workers  The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Reduction in Industrial Disputes Good industrial relation reduces the industrial disputes.Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. New Programmes New programmes for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. Functional Requirements Of A Successful Industrial Relations Programme www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 7. BA7034 Industrial Relations and Labour welfare 9 Top Management Support: Since industrial relations is a functional staff service, it must necessarily derive its authority from the line organization. This is ensured by providing that the industrial relations director should report to a top line authority to the president, chairman or vice president of an organization. Sound Personnel Policies: These constitute the business philosophy of an organization and guide it in arriving at its human relations decisions. The purpose of such policies is to decide, before any emergency arises, what shall be done about the large number of problems which crop up every day during the working of an organization. Policies can be successful only when they are followed at all the level of an enterprise, from top to bottom. Adequate Practices should be developed by professionals: In the field to assist in the implementation of the policies of an organization, a system of procedures is essential if intention is to be properly translated into action. The procedures and practices of an industrial relations department are the ―tool of management‖ which enables a supervisor to keep ahead of his job that of the time- keeper, rate adjuster, grievance reporter and merit rater. Detailed Supervisory Training: To ensure the organizational policies and practices are properly implemented and carried into effect by the industrial relations staff, job supervisors should be trained thoroughly, so that they may convey to the employees the significance of those policies and practices. They should, moreover, be trained in leadership and in communications. Follow-up of Results: A constant review of an industrial relations programme is essential, so that existing practices may be properly evaluated and a check may be exercised on certain undesirable tendencies, should they manifest themselves. A follow up of turnover, absenteeism, departmental morale, employee grievances and suggestion; wage administration, etc. should be supplemented by continuous research to ensure that the policies that have been pursued are best fitted to company needs and employee satisfaction. Hints of problem areas may be found in exit interviews, in trade union demands and in management meetings, as well as in formal social sciences research. Difference between industrial relations and human relations: www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 8. BA7034 Industrial Relations and Labour welfare 10 The term ―Industrial Relations‖ is different from ―Human Relations‖. Industrial relations refer to the relations between the employees and the employer in an industry. Human relations refer to a personnel-management policy to be adopted in industrial organizations to develop a sense of belongingness in the workers improves their efficiency and treat them as human beings and make a partner in industry. Industrial relations cover the matters regulated by law or by collective agreement between employees and employers. On the other hand, problems of human relations are personal in character and are related to the behavior of worker where morale and social elements predominated. Human relations approach is personnel philosophy which can be applied by the management of an undertaking. The problem of industrial relations is usually dealt with a three levels – the level of undertaking, the industry and at the national level. To sum up the term ―Industrial Relations‖ is more wide and comprehensive and the term ―Human Relations‖ is a part of it. Suggestions to Improve Industrial Relation Both management and unions should develop constructive attitudes towards each other All basic policies and procedures relating to Industrial Relation should be clear to everybody in the organization and to the union leader. The personnel manager must make certain that line people will understand and agree with these policies. The personnel manager should remove any distrust by convincing the union of the company‘s integrity and his own sincerity and honesty. Suspicious, rumors and doubts should all be put to rest. The personnel manager should not vie with the union to gain workers‘ loyal to both the organization. Several research studies also confirm the idea of dual allegiance. There is strong evidence to discard the belief that one can owe allegiance to one group only. Management should encourage right kind of union leadership. While it is not for the management to interfere with union activities, or choose the union leadership, its action and attitude will go a long way towards developing the right kind of union leadership. ―Management gets the union it deserves‖ is not just an empty phrase. 1.2 Industrial relations problems in the public sector Public Enterprise Company whose shares are available and traded on the stock market or other over-the- counter market. Subject to more regulation than a privately owned company, a public www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 9. BA7034 Industrial Relations and Labour welfare 11 enterprise has greater access to financing. Shareholders own a percentage of the company based on the amount of stock they own. Wage differentials It is an area where comparison between the public and private sectors is becoming common.The policy of settlement of wage structure,equal pay for equal work,wage differentials due to levels of responsibilities etc are all the issues that concern the labour in public enterprises. Industrial relations ―Industrial Relations is a developing and dynamic concept and such no more limits itself merely to the complex relations between the unions and management but also refers to the general web of relationships normally obtaining between employees – a web much more complex than the single concept of labour capital conflict‖. Surplus labour This problem is the outcome of indiscriminate recruitment on account of political pressures,reduction of activities,structural changes and improvement in technology. Over centralization Management decisions taken at local shop level are turned down by the higher authorities.This type of over centralization the local management lose the prestige and confidence. Multipricing of unions The existence of multiple union has brought the evils of inter union rivalaries. Political and bureaucratic influence Public enterprises are highly prone to be influenced by political and bureaucratic set up.Generally political people influenced decision making process 1.4 Growth of Trade Union Trade Union In the words of Indian Trade Union Act, 1926, ―A trade union is any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers, or between workmen and workmen, between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions‖. Define Trade Union. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 10. BA7034 Industrial Relations and Labour welfare 12 According to Dale Yoder defined as ―A trade union is a continuous association of wage – earners for the purpose of maintaining or improving the conditions of their working lives‖. The growth and development of the labour movement, and for that part of the trade unions, in India, can be divided into following periods, each of them revealing different tendencies that mark it from others. Functions of Trade Unions  To secure fair wages for workers.  To safeguard the security or tenure and improve conditions of service.  To enlarge opportunities for promotion and training.  To improve working and living conditions.  To provide for educational, cultural and recreational facilities.  To cooperate and facilitate technological advancement by broadening the understanding of workers in the issues involved in their jobs.  To promote identity of interests of the workers with their industry.  To offer responsive cooperation in improving levels of production and productivity, discipline and high standards of quality.  To promote individual and collective welfare. Features The main characteristics of the trade unionism are: Small size of membership, Lack of adequate finance, Non fulfillment of welfare schemes, Control of political parties, Outside interference in the activities of labor unions Social Welfare period, from 1875 to 1918 The development of industries led to large scale production on the one hand and social evils like employment and exploitation of women and child labour and the deplorable working conditions, the government‘s attitude of complete indifference in respect of protection of labour from such evils, on the other www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 11. BA7034 Industrial Relations and Labour welfare 13 Early Trade Union period, from 1918 to 1924 The year 1918 was an important one for the Indian trade union movement. ―It market the start of a new era, an era of growth and one in which the leadership of the trade unions was to pass from the hands of the social workers into the hands of the politicians Left-wing Trade Unionism period, from 1924 to 1934 In 1924, a violent and long-draw-out strike by unions led to the arrest, prosecution, conviction and imprisonment of many communist leaders. The AITUC emerged as the representative of the Indian working class. By 1927 it united 57 unions with a membership of 150,555. the rapid growth of the trade unionism was facilitated by the growth anti-imperialist national movement;  The brutal violence and repressive measures let loose by the British government, particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate arrest and imprisonment of national leaders and Satyagrahis;  The phenomenal profits earned by the capitalist in the face of falling real ages during the post-war period. Trade Unions’ Unity period from 1935 to 1938 In mid-thirties of the 20th century the state of divided labour movement was natural thought undesirable and soon after the first split, attempts at trade union unity began to be made through the efforts of the Roy Group on the basis of ‗a platform of unity‘. The imitative taken by All-India Railwaymen‘s Federation (s neutral body) had shown fruitful results. This Federation in its conference at Bombay, formed a Trade Union Unity committee in 1932. The Committee adopted the following ―platform of unity‖. ―A trade union is an orange of class-struggle; its basis task is to organize the workers for advancing and defending their rights and interests. Negotiation, representations and other methods of collective bargaining must remain an integral part of the trade union activates.‖ Second World War period from 1939 to 1945 The Second World War, which broke out in September 1939, created new strains in the united trade union movement. These strains arose because of the different political factions in the AITUC related in different ways to the role of India as a protagonist in the war. Post – independence period from 1947 to date. As pointed out earlier, when attempts to restructure the AITUC failed, those believing in the aims and ideals other than those of the AITUC separated from the organization and established the Indian National Trade Union Congress (INTUC) in May, 1947 1.5 CODE OF CONDUCT. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 12. BA7034 Industrial Relations and Labour welfare 14 A code of conduct is a set of rules outlining the social norms and rules and responsibilities of, or proper practices for, an individual, party or organization. Related concepts include ethical, honor, moral codes and religious laws Objectives of Code of Conduct  To ensures that the employers and employees recognize each other‘s rights and obligations.  To avoid work stoppage.  To facilitate the free growth of trade unions.  To maintain discipline in industry. Principles of code of conduct.  Every employee in industry or unit shall have the freedom and right to join a union of his choice. No coercion shall be exercised in this matter.  There shall be no dual membership of unions.  There shall be regular and democratic elections of executive bodies.  Casteism, communalism and provincialism shall be eschewed by all unions.  There shall be no violence, cocercion, intimidation, or personal vilification in inter – union dealings.  All Central unions shall combat the formation or continuance of company unions. What a Code Can Help to Accomplish  A quality code of conduct can go a long way in improving a company‘s success. Companies that view a code merely as a way to communicate legal rules miss much of the value that a code can provide. A well-developed code can help a company to:  Prevent legal and regulatory violations. This is the first objective that most companies attach to a code of conduct. When violations do occur, a code can help to detect them and mitigate their effects.  Foster greater employee loyalty and retention. When employees feel included and engaged in the company‘s culture and success, they feel more committed.  Encourage greater customer loyalty and retention. When customers learn about and then experience in practice a company‘s high standards of conduct, customers are more likely to show their appreciation.  Build stronger relationships with suppliers and other business partners. As with employees, the more that they understand what the company expects of them – and what they can expect from the company – the stronger the alliance.  Strengthen trust and respect of other stakeholders, such as local communities, regulators, NGOs, even from competitors. As codes become publicly available publications, more outside stakeholders are reviewing them and setting their expectations of the company partly based on its code. The more that a company www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 13. BA7034 Industrial Relations and Labour welfare 15 lives up to the expectations that it has established, the greater goodwill it engenders.  Build a stronger reputation for integrity by helping the company to do what it says it will do. How a Code Works  A quality code of conduct helps a company‘s leadership to accomplish its strident objectives because of how the code functions. As part of an overall code of conduct program, a code works because it:  Articulates leadership’s expectations. Simply establishing these expectations regarding what leadership expects is worthwhile. It provides clarity and transparency so that staff does not have to guess at leadership‘s expectations.  Establishes leadership’s commitment. Much as been addressed regarding the importance of ―tone at the top‖; regarding expectations of responsible conduct, this tone rises in importance.  Provides staff with a roadmap and tools for their daily work. With clarity regarding leadership‘s expectations that an employee can easily and regularly reference, staff can act with consistency. Further, employees can turn to the code for guidance on questions or concerns. It is especially important to help employees to make good decisions when they face ambiguous situations or other issues that the code does not directly address.  Provides staff with comfort and confidence. As ethics consultant Frank Navran puts it, a code can provide staff with comfort that the company will support them when they act according to the code and confidence that the decisions they make when they are in line with the code.  Encourages staff to serve the company’s aspirations. A good code can encourage employees to strive to achieve the company‘s mission, vision and values in a constructive way. Elements of an Effective Code  A code of conduct publication does not work in a vacuum. Important factors for a successful code include:  Foundations that support a successful code program.  Components of a successful code program.  Dimensions for an effective code publication. Foundations for a Program  These foundations serve as important considerations for a successful code of conduct program. While not all of the foundations are mandatory – and in fact they will exist in each company in varying forms – the more firmly that they are established, the more likely that the code (and the larger ethics and compliance initiative) will lead to success. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 14. BA7034 Industrial Relations and Labour welfare 16  Leadership commitment to the program – Without senior leadership‘s commitment, any code initiative is unlikely to truly engage employees and demonstrate to them the ―tone at the top‖ that is so critical to any business initiative – especially one focused on ‗doing the right thing.‘  Ethics and compliance processes – Leadership‘s commitment means so much more when the organization can point to procedures and processes that support a code standards and expectations. Otherwise, employees are right to wonder about how leadership expects to achieve adherence to the company‘s standards and address concerns.  Company culture – A company culture focused around an enduring mission or vision and supported by lasting values sets the best foundation for a proper focus on long-term value and success. These core foundations help a code rise about a narrow focus only on the law to other commitments, promises and aspirations that the company seeks to achieve.  Understanding of risk – A company‘s awareness of the ethics and compliance risks that it faces is central to a code of conduct. With the hundreds of issues that a code could possibly address, a more targeted risk identification and assessment effort helps to focus the code‘s contents to those issues that are most important to the company‘s operations and that will provide it with a higher chance of success.  Coordination with policies – A company‘s policies often provide the detail underlying its expectations. Policies also can provide the initial framework for a new code of conduct and serve as additional resources to support a code‘s standards. Where policies exist, they provide important context for a code development or revision effort. Four Parts Part 1: Contains the duties and responsibilities of employers, workers, and the government in maintaining discipline in industry Part 2: Enlists the common obligations of Management and unions Part 3 : Deals with obligations of management only Part 4: Relates to those unions only Part1: To maintain Discipline in Industry ( Both in public and Private sector)  Recognition of employers and workers must be defined by laws and agreements.  Proper and willing discharge by either party of its obligation consequent on such recognition. Part2: To Ensure Better discipline in Industry , Management and Union(s) Agree  No Unilateral action should be taken  Existing machinery for settlement of dispute.  No strike or lockout without notice  Must follow the democracy principles by mutual negotiation, conciliation and voluntary arbitration www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 15. BA7034 Industrial Relations and Labour welfare 17  Must promote constructive cooperation  In Grievance based speedy and full investigation must be followed.  Educate the Management and workers regarding obligations Part3: Management Agrees  Not to increase workloads  Not to support or encourage any unfair labor practice as interference, discrimination, victimization  To take prompt actions as settlement of grievance Implementation of settlements, awards, decisions and orders  To take appropriate disciplinary action against officers and members in which they are responsible for indiscipline among employees.  Warning, reprimand, suspension will appeal through normal grievance procedure.  Must follow the rules of Indian Labor conference held in May 1958. Part4:Union(s) Agree  Not to encourage any form f physical duress  Not to Permit demonstrations  Unless law, agreement or practice the employee must not engage in any union activity during working hours  Discourage unfair labour practices as damage to property, careless operation  To take prompt action to implement awards , agreements and decisions.  To display the rules in local languages at important places in union offices.  Moral sections of code of conduct  To ask the unit to explain the infringement of the code  To give notice to the unit within specific period  Not to give countenance to non members who did not observe the code  A dispute must not be referred for strikes and lockouts www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 16. BA7034 Industrial Relations and Labour welfare 18 CHAPTER 2 INDUSTRIAL CONFLICTS 2.1 Industrial Disputes. Industrial Disputes mean any dispute or difference between employers and employers, or between employers and workmen or between workmen and workmen, which is connected with the employment or non – employment o r term of employment or with the conditions of labour of any person‖. Definition According to the Industrial Disputes Act, 1947, Section 2(k); ―Industrial Disputes mean any dispute or difference between employers and employers, or between employers and workmen or between workmen and workmen, which is connected with the employment or non – employment o r term of employment or with the conditions of labour of any person‖. 2.2 Impacts of industrial relations conflict for a business Industrial relations conflict can affect the business in the following way.  Reduced productivity  Loss of profits  Damage to public image  Difficulty in recruiting & keeping staff  Wasted time and energy  Increased costs 1.Reduced productivity Due to lack of interests, labour will not concentrate in quantity and quality of production. It leads to loss of profit. 2. Loss of profits Even though all companies and organizations are targeting in profits, they can‘t proceed for that goals because of labour absence and decrease in production. 3. Damage to public Image Company‘s good will and self image is very important in this competitive world. So, due to industrial disputes and strikes that image will be get down in people mind. 4. Difficulty in recruiting & keeping staff Employee must have the value and satisfaction in their working period about the company, but if the firm‘s value has damaged due to industrial disputes means the company can‘t recruit any other employees to their company and fulfilment of goals. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 17. BA7034 Industrial Relations and Labour welfare 19 5. Wastage of time and Energy If unnecessary disputes arises inside the organization and it is continuing means it will result in major discussion and finally it leads to wastage of time and energy. 6. Increased costs The mantra for perfect business is decrease in cots and increase in profits, but the increase in industrial disputes will have the main problem of increase in costs and decrease in production and also the profit Major impacts: 1. Unrest and unnecessary tensions engulf the hearts and minds of all the people involved - labour and senior management. 2. There is economic loss due to conflicts because conflicts may result in strikes and lock-outs. This causes low or no production resulting in industrial loss. 3. Industrial loss may cause economic depression because many industries are interlinked. A problem in one industry may drastically affect another industry. 4. The lives of low-level labourers become worse when they are out of work. They may be the only working members of the family, and their joblessness may lead everyone in the family to poverty. 5. When industrial conflicts get out of hand, they become a threat to peace and security. Workers may resort to violence and indulge in sabotage. 2.3 Causes Of Industrial Disputes Handling employee misconduct is a very critical task to be performed by the senior managers. Misconduct and other offensive behaviors often lead to decreased levels of productivity as they affect the individual performance of the employees. To manage discipline among employees, every company opts for a discipline policy which describes the approach it will follow to handle misconduct. The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc.  Wages and allowances  Personnel and retrenchment www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 18. BA7034 Industrial Relations and Labour welfare 20  Indiscipline and violence  Bonus  Leave and working hours Wages and allowances Since the cost of living index is increasing, workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. In 2002, 21.4% of disputes were caused by demand of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes. Personnel and retrenchment Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by personnel, and only 0.4% were caused by retrenchment. Indiscipline and violence: From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to indiscipline respectively. During the year 2003, indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groups wage and allowance and personnel with 20.4% and 11.2% respectively. A similar trend was observed in 2004 where indiscipline accounted for 40.4% of disputes. Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively Leave and working hours: Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 19. BA7034 Industrial Relations and Labour welfare 21 and hours of work while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and working hour Consequences of Industrial Conflicts  Unrest and unnecessary tensions engulf the hearts and minds of all the people involved - labourers and senior management.  There is economic loss due to conflicts because conflicts may result in strikes and lock-outs. This causes low or no production resulting in industrial loss.  Industrial losses may cause economic depression because many industries are interlinked. A problem in one industry may drastically affect another industry.  The lives of low-level labourers become worse when they are out of work. They may be the only working members of the family, and their joblessness may lead everyone in the family to poverty.  When industrial conflicts get out of hand, they become a threat to peace and security. Workers may resort to violence and indulge in sabotage. 2.4 Strikes  Strike is ―a temporary cessation of work by a group of employees in order to express their grievance or to enforce a demand concerning changes in work conditions‖.  Section 2(q) of the Industrial Disputes Act, 1947, defines a strike as ―a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal under a common understanding of a number of persons who are or have been so employed to continue to work or to accept employment‖. Types of Strikes  Go slow - Go slow does not amount to strike but it is a serious case of misconduct.  Hunger strike-Some workers may resort to fast on or near the place of work or residence of the employer  Lightning or wildeat strike -It is an unofficial strike ie., a strike not sanctioned by the union. Such strikes occur in violation of the no strike pledge in collective bargaining agreements  Stay in, sit down, pen down or Tool down strike- In all such cases the workmen after taking their seats, refuse to do work by their combination  Symapathetic strike-Cessation of work in the support of the demand workmen belonging to their employer. The management can take disciplinary actions for the absence of workmen.  Economic Strike-In this type the members of trade union stop work to enforce their economic demands such as increase in wages, bonus and other benefits. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 20. BA7034 Industrial Relations and Labour welfare 22  General strike-It means a strike by members of all or most of the unions in region or an industry. It nay be a strike of all or most of the unions in region or an industry.  Lock outs-It is declared by the employers to put pressure on their workers.It is an act on the part of the employers to close down the place of work until the workers agree to resume work on the terms and conditions specified by the employers.  Lay off-Lay off means failure, refusal or inability of an employer, shortage of power or raw materials or accumulation of the stocks or the breakdown of the machinery or for any other reason not to give employment to a workman.  Retrenchment-It means the termination of the service of a workman for any reasons by the employer. It does not include the voluntary retirement of the workman.  Gherao-It denotes collective action by the workers which members of the management will be imprisoned by them.  Picketing-When workers are dissuaded a certain men at the factory gates it is called as picketing. It is perfectly legal . It is to draw the attention of public.  Boycott-The workers may decide to boycott the company by not using its products. It affects marketability of its products. 2.5 Industrial peace Industrial peace is not merely a negative concept signifying the absence of industrial unrest, or the reconciling of hostile forces in order to avoid ruinous strife, but it also signifies the active presence of harmonious and good industrial relations generating amity and goodwill between the partners in an industry – a condition which is both the cause and effect of fruitful co – operation 1. Strong trade union with democratic norms 2. Employers should have progressive outlook 3. Employers should recognize the rights of the workers 4. Both (workers and management) should faith in collective bargaining and settlement disputes. 5. Encourgement of workers participative management. 6. Two communication between both the parties 7. Govt should play an active role for promoting industrial peace.It should make law for the compulsory recognition of a representative union in each industrial unit. 2.6 Government Machinery The various methods and machinery under the industrial disputes act can be classified as under the following heads: (I) Conciliation Works committee www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 21. BA7034 Industrial Relations and Labour welfare 23 Conciliation officer Board of conciliation (II) Arbitration Court of inquiry (III) Adjudication Labour court Industrial tribunal and National trinal 2.6.1 Conciliation: Conciliation, is a form of mediation. Mediation is the act of making active effort to bring two conflicting parties to compromise. Mediation, however, differs from conciliation in that whereas conciliator plays only a passive and indirect role, and the scope of his functions is provided under the law, the mediator takes active part and the scope of his activities are not subject to any statutory provisions. Conciliation is the ―practice by which the services of a neutral party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement of agreed solution.‖ The Industrial Disputes Act, 1947 provides for conciliation, and can be utilised either by appointing conciliation officers (permanently or for a limited period) or by constituting a board of conciliation. This conciliation machinery can take a note of a dispute or apprehend dispute either on its own or when approached by either party. With a view to expediting conciliation proceeding, time-limits have been prescribed— 14 days in the case of conciliation officers and two months in the case of a board of conciliation, settlement arrived at in the course of conciliation is binding for such period as may be agreed upon between the parties or for a period of 6 months and with continue to be binding until revoked by either party. The Act prohibits strike and lock- out during the pendency of conciliation proceedings before a Board and for seven days after the conclusion of such proceedings. Conciliation Officer: The law provides for the appointment of Conciliation Officer by the Government to conciliate between the parties to the industrial dispute. The Conciliation Officer is given the powers of a civil court, whereby he is authorised to call the witness the parties on oath. It should be remembered, however, whereas civil court cannot go beyond interpreting the laws, the conciliation officer can go behind the facts and make judgment which will be binding upon the parties. On receiving information about a dispute, the conciliation officer should give formal intimation in writing to the parties concerned of his intention to commence conciliation www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 22. BA7034 Industrial Relations and Labour welfare 24 proceedings from a specified date. He should then start doing all such things as he thinks fit for the purpose of persuading the parties to come to fair and amicable settlement of the dispute. Conciliation is an art where the skill, tact, imagination and even personal influence of the conciliation officer affect his success. The Industrial Disputes Act, therefore, does not prescribe any procedure to the followed by him. The conciliation officer is required to submit his report to the appropriate government along with the copy of the settlement arrived at in relation to the dispute or in case conciliation has failed, he has to send a detailed report giving out the reasons for failure of conciliation. The report in either case must be submitted within 14 days of the commencement of conciliation proceedings or earlier. But the time for submission of the report may be extended by an agreement in writing of all the parties to the dispute subject to the approval of the conciliation officer. If an agreement is reached (called the memorandum of settlement), it remains binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and continues to be binding on the parties after the expiry of the period aforesaid, until the expiry of two months from the date on which a notice in writing of an intention to terminate the settlement is given by one of the party or parties to the settlement. Board of Conciliation: In case Conciliation Officer fails to resolve the differences between the parties, the government has the discretion to appoint a Board of Conciliation. The Board is tripartite and ad hoc body. It consists of a chairman and two or four other members. The chairman is to be an independent person and other members are nominated in equal number by the parties to the dispute. Conciliation proceedings before a Board are similar to those that take place before the Conciliation Officer. The Government has yet another option of referring the dispute to the Court of Inquiry instead of the Board of Conciliation. The machinery of the Board is set in motion when a dispute is referred to it. In other words, the Board does not hold the conciliation proceedings of its own accord. On the dispute being referred to the Board, it is the duty of the Board to do all things as it thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement. The Board must submit its report to the government within two months of the date on which the dispute was referred to it. This period can be further extended by the government by two months. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 23. BA7034 Industrial Relations and Labour welfare 25 2. Court of Inquiry: In case of the failure of the conciliation proceedings to settle a dispute, the government can appoint a Court of Inquiry to enquire into any matter connected with or relevant to industrial dispute. The court is expected to submit its report within six months. The court of enquiry may consist of one or more persons to be decided by the appropriate government. The court of enquiry is required to submit its report within a period of six months from the commencement of enquiry. This report is subsequently published by the government within 30 days of its receipt. Unlike during the period of conciliation, workers‘ right to strike, employers‘ right to lockout, and employers‘ right to dismiss workmen, etc. remain unaffected during the proceedings in a court to enquiry. A court of enquiry is different from a Board of Conciliation. The former aims at inquiring into and revealing the causes of an industrial dispute. On the other hand, the latter‘s basic objective is to promote the settlement of an industrial dispute. Thus, a court of enquiry is primarily fact-finding machinery. 2.6.2 Arbitration On failure of conciliation proceedings, the conciliation officer many persuade the parties to refer the dispute to a voluntary arbitrator. Voluntary arbitration refers to getting the disputes settled through an independent person chosen by the parties involved mutually and voluntarily. In other words, arbitration offers an opportunity for a solution of the dispute through an arbitrator jointly appointed by the parties to the dispute. The process of arbitration saves time and money of both the parties which is usually wasted in case of adjudication. Voluntary arbitration became popular as a method a settling differences between workers and management with the advocacy of Mahatma Gandhi, who had applied it very successfully in the Textile industry of Ahmedabad. However, voluntary arbitration was lent legal identity only in 1956 when Industrial Disputes Act, 1947 was amended to include a provision relating to it. The provision for voluntary arbitration was made because of the lengthy legal proceedings and formalities and resulting delays involved in adjudication. It may, however, be noted that arbitrator is not vested with any judicial powers. He derives his powers to settle the dispute from the agreement that parties have made between themselves regarding the reference of dispute to the arbitrator. The arbitrator should submit his award to the government. The government will then publish it within 30 days of such submission. The award would become enforceable on the expiry of 30 days of its publication. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 24. BA7034 Industrial Relations and Labour welfare 26 Voluntary arbitration is one of the democratic ways for setting industrial disputes. It is the best method for resolving industrial conflicts and is a close‘ supplement to collective bargaining. It not only provides a voluntary method of settling industrial disputes, but is also a quicker way of settling them. It is based on the notion of self-government in industrial relations. Furthermore, it helps to curtail the protracted proceedings attendant on adjudication, connotes a healthy attitude and a developed outlook; assists in strengthening the trade union movement and contributes for building up sound and cordial industrial relations. 2.6.3 Adjudication The ultimate remedy for the settlement of an industrial dispute is its reference to adjudication by labour court or tribunals when conciliation machinery fails to bring about a settlement. Adjudication consists of settling disputes through intervention by the third party appointed by the government. The law provides the adjudication to be conducted by the Labour Court, Industrial Tribunal of National Tribunal. A dispute can be referred to adjudication if hot the employer and the recognised union agree to do so. A dispute can also be referred to adjudication by the Government even if there is no consent of the parties in which case it is called ‗compulsory adjudication‘. As mentioned above, the dispute can be referred to three types of tribunals depending on the nature and facts of dispute in questions. These include: (a) Labour courts, (b) Industrial tribunals, and (c) National tribunals. The procedure, powers, and provisions regarding commencement of award and period of operation of award of these three bodies are similar. The first two bodies can be set up either by State or Central Government but the national tribunal can be constituted by the Central Government only, when it thinks that the adjudication of a dispute is of national importance. These three bodies are into hierarchical in nature. It is the Government‘s prerogative to refer a dispute to any of these bodies depending on the nature of dispute. (а) Labour Court: A labour court consists of one person only, who is normally a sitting or an ex-judge of a High Court. It may be constituted by the appropriate Government for adjudication of disputes which are mentioned in the second schedule of the Act. The issues referred to a labour court may include: www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 25. BA7034 Industrial Relations and Labour welfare 27 (i)The propriety or legality of an order passed by an employer under the Standing Orders. (ii) The application and interpretation of Standing Orders. (iii) Discharge and dismissal of workmen and grant of relief to them. (iv) Withdrawal of any statutory concession or privilege. (v) Illegality or otherwise of any strike or lockout. (vi) All matters not specified in the third schedule of Industrial Disputes Act, 1947. (It deals with the jurisdiction of Industrial Tribunals). (b) Industrial Tribunal: Like a labour court, an industrial tribunal is also a one-man body. The matters which fall within the jurisdiction of industrial tribunals are as mentioned in the second schedule or the third schedule of the Act. Obviously, industrial tribunals have wider jurisdiction than the labour courts. Moreover an industrial tribunal, in addition to the presiding officer, can have two assessors to advise him in the proceedings; the appropriate Government is empowered to appoint the assessors. The Industrial Tribunal may be referred the following issues: 1. Wages including the period and mode of payment. 2. Compensatory and other allowances. 3. Hours of work and rest intervals. 4. Leave with wages and holidays. 5. Bonus, profit sharing, provident fund and gratuity. 6. Shift working otherwise than in accordance with the standing orders. 7. Rule of discipline. 8. Rationalisation. 9. Retrenchment. 10. Any other matter that may be prescribed. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 26. BA7034 Industrial Relations and Labour welfare 28 (c) National Tribunal: The Central Government may constitute a national tribunal for adjudication of disputes as mentioned in the second and third schedules of the Act or any other matter not mentioned therein provided in its opinion the industrial dispute involves ―questions of national importance‖ or ―the industrial dispute is of such a nature that undertakings established in more than one state are likely to be affected by such a dispute‖. The Central Government may appoint two assessors to assist the national tribunal. The award of the tribunal is to be submitted to the Central Government which has the power to modify or reject it if it considers it necessary in public interest. It should be noted that every award of a Labour Court, Industrial Tribunal or National Tribunal must be published by the appropriate Government within 30 days from the date of its receipt. Unless declared otherwise by the appropriate government, every award shall come into force on the expiry of 30 days from the date of its publication and shall remain in operation for a period of one year thereafter. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 27. BA7034 Industrial Relations and Labour welfare 29 CHAPTER 3 LABOUR WELFARE 3.1 Concept of labour welfare Labour welfare is an important dimension of industrial relation, labour welfare includes overall welfare facilities designed to take care of well being of employee's and in order to increase their living standard.It can also be provided by government, non government agencies and trade unions. The concept of labour welfare is flexible and elastic and differs widely with time, region, industry, social values and customs, degree of industrialization, the general socio – economic development of the people and the political ideologies prevailing at a particular time. It is also molded according to the age – group, sex, socio – cultural background, marital and economic status and educational level of the workers in various industries. Labour Welfare- Definition According to the Committee on Labour Welfare, welfare services should mean: ―Such services, facilities, and amenities as adequate canteens, rest and recreation facilities, sanitary and medical facilities, arrangements for travel to and from place of work, and for the accommodation of workers employed at a distance from their homes; and such other services, amenities and facilities, including social security measures, as contribute to the conditions under which workers are employed.‖  The employers need welfare activities to discharge their social responsibility, raise the employees morale use the work force more effectively and to reduce function with workers and to avoid Welfare facilities besides removing dissatisfaction help to develop loyalty in workers towards the organization.  Welfare may help minimize social evils, such as alcoholism, gambling, prostitution and drug addiction.  To create harmonious industrial relationship. History Of Labour Welfare  In India the labour welfare started sometime during the 1st world war (1914- 1918). Till then wellbeing of workers in factories was hardly thought by anybody.  Industrial Labour Organization has played a very significant role for labour welfare.  Formed by Indian central government and state governments for welfare of labour in Industries  Cntd…  Government has laid down minimum standards for employment and working www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 28. BA7034 Industrial Relations and Labour welfare 30 conditions in organizations.  trade unions and various social organizations also function as agencies for implementation of labour welfare measures. 3.2 Objectives of Labour Welfare.  To increase the standard of living of the. Working class The labourer is more prone to exploitation from the capitalists if there is no standardized way of looking after their welfare.  To make the management feel the employees are satisfied about the work and working conditions.  To reduce the labour problems in the orgnisaton: There are various problems affecting the workers, problems like absenteeism, turnover ratio, indebtedness, alcoholism, etc., which make the labourer further weak both physically and psychologically. Labour Welfare looks forward to helping the labourer to overcome these problems.  To recognize human values Every person has his own personality and needs to be recognized and developed. It is in the hands of the management to shape them and help them grow. The management employs various methods to recognize each one's worth as an individual and as an asset to the organization.  Labour Welfare helps to foster a sense of responsibiJjty in the industry: A person works both in a group and as an individual. If the person is given responsibility he will act better or else he will be only a slave to the direction of the superiors and will not show any initiative to prove his worth,  Labour Welfare improves industrial relations and reduces industrial disputes: Industrial dispute in any industry is a sign of unsatisfied employees. Labour Welfare measures act as a preventive tool to most of these disputes.  To retain the employees There should be fixed policies: This calls in to prepare the policies, to conduct different training programmes, to have various motivational schemes, to create interest in the job. The employees who feel secure in an organisation, backed by fixed welfare policies have less chance of looking for a job elsewhere.  To show up their positive mind in the work: Positive mind refers to the development of one's attitudes. This is to change the negative attitude into positive.  To influence over other employees: This means Labour Welfare helps to change one's personality - presentation skills, communication skills, inter-personal relationships, etc. This is best achieved when their morale is kept high by the different welfare schemes.  To increase the bargaining power of the employees: Bargaining means to systematically extract something from the opponent. The better bargaining power, the better influence on the opponent. Labour welfare measures like www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 29. BA7034 Industrial Relations and Labour welfare 31 formation of works committee, worker's participation, Trade Union, etc., will surely help them to have better bargaining power. 3.3 Scope of Labor welfare. Working Environment Favourable working environment enhances efficiency of workers and includes proper illumination, safety, temperature, vetilation, sanitation, cleanliness and canteen facilities. Workplace sanitation and cleanliness is very important for making workplace favourable to workers. Following points should be considerdered to make workplace favourable to workers.  Proper ventilation, lighting, temperature, cleanliness, seating arrangements etc.  Proper safety measures for workers should be there.  Sufficient urinals, lavatories and bathing facilities should be provided and cleaned regularly.  Proper gardening and cleanliness of open spaces.  Pure drinking water should be provided.  CantSeenservices. Healthfacilities  Health center should be provided within factory.  Ambulance service should be provided within factory in case of any emergency.  Free medical checkup of workers and health and diet counselling of workers.  Availability of Doctor inside the factory for emergency.  Women and child welfare work.  Recreation facilities inside the organization  Education and library services Nature Of Welfare  Schemes of labour welfare shall be updated time to time according to needs of workers.  Labour welfare provides facilities in addition to regular wages and other economic benefits.  Employers, government, NGOs etc. introduce labour welfare measures.  Labour welfare provides facilities which improves workers work-life balance. 3.4 Need of Labour welfare  The employers need welfare activities to discharge their social responsibility, raise the employees morale use the work force more effectively and to reduce function with workers and to avoid www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 30. BA7034 Industrial Relations and Labour welfare 32 Welfare facilities besides removing dissatisfaction help to develop loyalty in workers towards the organization.  Welfare may help minimize social evils, such as alcoholism, gambling, prostitution and drug addiction.  To create harmonious industrial relationship. Approaches to labour welfare  Approaches to labour welfare gives a clear idea about the attitudes, beliefs and traditions applied by the labour welfare agencies.  Many organisations are becoming aware of the welfare facilities being provided to its employees.  employers are establishing welfare standards voluntarily, willingly an enthusiastically.  Welfare benefits not only extended to self but the society also.  Many approaches have been designed in this perspective. I) The Policing Theory  This theory is basically meant for making the employees and the workers availed with the basic facilities needed. E.g- latrines, drinking water, enough rest and lunch intervals, etc.  In this approach the government has introduced the practices to control the exploitation of workers by their management/ employer. E.g- heavy work load and less payments, very small time intervals, no freedom of speech, etc.  In case of non completion of the above, the management is liable to get a severe punishment. II) The religion Theory  This theory believes in two key approaches:-  The Investment. & The Atonement ( punishment)  The Investment theory explains the welfare benefits provided to the workers is the current Investment made for future progress.  ―Man is a religious animal‖  ―Raw fruit today, flourish to tomorrow.‖  The atonement approach says,  If the employees/workers are not getting availed with the benefits, it is a part of there sins in the past.. They need to be atone for that purpose. III) Philantropic approach  This is a benevolent approach which has a keen interest in ―giving strategy‖.  Provisions for good conditions of work, day-care facilities for children, canteens, washing facilities. (In regards to the employees)  And rehabilitation of disabled people, working boys/girls hostel facilities, donations to NGO‘s,  Rewards to the educational institutions, etc.  This theory is only encouraged for the well being of internal and external environment. IV) Paternalistic Approach www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 31. BA7034 Industrial Relations and Labour welfare 33  In this theory, the owner, occupier or the employer, holds the funds of the Industry in a trust.  This trust consist of board or trust members, and any amount to be spent in favor of the employees and the society is first being taken in discussion.  It creates a good moral for the internal and external envoirnment.  Also known as the trusteeship theory of labour welfare.  V) The Placating theory  This theory mainly responds to the peaceful measures applicable for the workers and employees.  Application of this theory is basically meant for the organized and committable/ enthusiastic.  This theory enables the employees to be pleased and oblige with the provided welfare benefits.  VI) Public Relations Theory  This theory basically focuses on the attraction or goodwill for the industry.  In this theory the welfare benefits are directly related to the impression of the Industry.  Impression with the point of view of internal and external envoirnment.  E.g- the In -house employees and the visitors too.  VII) Functional Theory  This theory believes the high productivity/ outcome of employees, by providing them the welfare benefits.  Approach expects the results in the employees/workers efficiency and effectiveness on work.  This concepts is commonly used in nature.  Also known as the efficiency theory of labour welfare. VIII ) Social theory  This theory believes in well being of the society with the employees.  Various provisions related to the society are to be established with this theory.  Therefore this theory results in enhancing the condition / state of the society . 3.5 Voluntary welfare activities. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters. Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 32. BA7034 Industrial Relations and Labour welfare 34 Maternity & Adoption Leave – Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization. 3.6 Various statutory welfare activities Statutory welfare measures mainly include welfare facilities provided within the precincts of an industrial establishment. They form part of the employers‟ statutory obligations. All welfare states provide welfare to the labour by securing and protecting social order to ensure social, economic and political justice. PROVISIONS REGARDING THE WELFARE OF WORKERS Washing. In every factory adequate and suitable facilities for washing shall be provided and maintained. They shatI be conveniently accessible and shall be kept clean. There must be separate provisions for male and female workers.-Sec. 42. Storing and drying. The State Government may make rules requiring the provision of suitable facilities for storing and drying clothing.-Sec. 43. Sitting. Sitting facilities must be provided for workers who have to work in a standing position. so that they may take rest when possible. When work can be done in a sitting position efficiently the Chief Inspector may direct the provision of sitting arrangements. Sec. 44. First aid. Every factory must provide first aid boxes or cupboard. They must contain the prescribed materials and they must be in charge of persons trained in first aid treatment. Factories employing more than 500 persons must maintain an ambulance roam containing the prescribed equipment and in charge of the prescribed medical and nursing staff-Sec. 45. Canteens. Where more than 250 workers are employed. the state Government may require the opening of canteen or canteens for workers. Rules may be framed regarding the food served. its management etc.,..-Sec. Shelters. In every factory where more than 150 workers are employed there must be provided adequate and suitable shelters or rest. rooms and a lunch room (with drinking www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 33. BA7034 Industrial Relations and Labour welfare 35 water supply) where workers may eat meals brought by them. Such rooms must be sufficiently lighted and ventilated and must be maintained in a cool and clean condition~. The standards may be fixed by the State Government. -Sec. 47 Creches. In every factory where more than 30 women a employed, a room shall be provided for the use of the children (below 6 years) of such women. The room shall be adequate size. well lighted and ventilated, maintained in a clean and sanitary condition and shall be in charge of a woman trained in the care of children and infants. The standards shall be laid down by the State Government.Sec. 48. Welfare officers. Welfare officers must be appointed in every factory where 500 or more workers are employed. The State Government may prescribe the duties, qualifications etc. of such officers. Sec. 49. Rules. The State Government may make rules regarding the welfare of workers.-Sec. 50. NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following schemes: Personal Health Care (Regular medical check-ups) Some of the companies provide the facility for extensive health check-up Flexi-time The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs Employee Assistance Programs Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters. Harassment Policy To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 34. BA7034 Industrial Relations and Labour welfare 36 Maternity & Adoption Leave Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies. Medi-claim Insurance Scheme This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy. Employee Referral Scheme In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization. 5 Different Categories of Labour Welfare Some of the major categories of labour welfare are: (1) Intra-mural Facilities (2) Extra- mural Facilities (3) Statutory Facilities (4) Mutual Facilities and (5) Voluntary. It is very difficult to classify the welfare activities into certain broad categories. (1) Intra-mural Facilities: The facilities provided inside the factory are known as intra-mural facilities. These facilities include activities relating to minimisation of industrial fatigue, provision of safety measures like fencing and covering of machines, good layout of the plant and machinery, sufficient lighting conditions, provision of first aid appliances etc. Provisions of such facilities are also obligatory in all industrial establishments all over the world. (2) Extra-mural Facilities: Facilities offered to the workers outside the factory are known as extra-mural facilities. They include better housing accommodations, indoor and outdoor recreation sports, educational facilities etc. The provision of these facilities is voluntary. Earlier, due attention was not given to the provision of extra-mural facilities to the workers but now it is realised that these facilities are very important for the general welfare and upliftment of the workers. (3) Statutory Facilities: Under this category, welfare facilities are provided according to the labour legislations passed by the Government. The nature and coverage of these facilities vary from country to country. Again these facilities may be either intra-mural facilities or extra- mural facilities. These facilities must be provided by all the employers and cannot be ignored. Any contravention of the statutory provisions shall render the employer punishable under the Act concerned. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 35. BA7034 Industrial Relations and Labour welfare 37 The National Commission of Labour has divided all the statutory measures under two distinct heads: 1. Facilities which have to be provided irrespective of the size of the establishment e.g., drinking water. 2. Facilities which are to be provided subject to the employment of a specified number of persons, e.g., creches. (4) Mutual Facilities: These facilities are usually outside the scope of the statutory facilities. These activities are voluntarily undertaken by the workers themselves for their own interest. As such the employer has no say in it. (5) Voluntary: The facilities which are voluntarily provided by the employers come under this category. Hence these are not statutory. No doubt, the activities under this category ultimately lead to increase in the efficiency of workers. 3.7 Labour welfare funds Labour welfare funds are created as a measure of social security provided to the working class. Social security is one of the working class. Social security is one of the three categories of labour welfare activities classified by the study group appointed by the Government of India to examine the labour welfare activities The Government constitutes Labour Welfare Fund, as per section 3, to which the following are credited to – a) All Unpaid Accumulations due to workers b) All fines realised from the workers c) Deduction made under the proviso to Sub-section(2) of section 9 of the Payment of Wages Act,1936 and the proviso to Sub-section (2) of section 36 of the Tamil Nadu Shops and Establishments Act, 1947. d) Contribution from Employees, Employers and Government, e) Any interest by way of penalty, paid under Section 14 of the Tamil Nadu Labour Welfare Fund Act, 1972. f) Any Voluntary Donation. g) Any amount raised by the Board from other sources to augment the resources of the Board. h) Any fund transferred under Sub-section 5 of Section 17 of the Tamil Nadu Labour Welfare Fund Act, 1972. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 36. BA7034 Industrial Relations and Labour welfare 38 i) Any sum borrowed under Section 18 of Tamil Nadu Labour Welfare Fund Act,1972 j) Any unclaimed amount credited to the Government in accordance with the rules made under the Payment of Wages Act, 1936 and Minimum Wages Act, 1948 . k) Grants or Advances made by the Government. 3.8 Education and training programme. Employee’s Education: In the word of William Flayed, ―Worker Education‖ is an attempt on the part of organized labour to educate its own members under an educational system in which the workers prescribe the courses of instructions, select the teachers and in a considerable measure, furnish the finance.‖ Features of employees education i.The scope of workers‘ education is much wider than that of trade union education but is narrower than that of adult education. ii.The workers‘ education is designed to create trade union consciousness among workers, besides making them good citizens and training them to understand their status, rights and responsibilities. iii.In workers‘ education, the workers themselves prescribe the curriculum and select the teachers who have full sympathy with the working class. iv.The institutions providing workers‘ education are owned, financed and managed by the workers. v.It is aimed at increasing the bargaining power of trade unions and making the working class more sensible and cooperative. vi.It differs from vocational and professional education, for its main aim is to train a worker for his group advancement and increasing individual creativity, whereas vocational and professional education aims at individual development. vii.The approach in workers‘ education is psychological and philosophical. viii.It includes general education, vocational education, technical education, social education and training in trade unionism. The Director General of Employment and Training (DGET) has designed a number of training procedures are www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 37. BA7034 Industrial Relations and Labour welfare 39 The Board has developed a need based, three tier training programme for education officers, workers and teachers. In first state education officer are trained. The period or training is four months. Then they give training for different regional centres. Second stage is to get selected workers trained as worker teachers at the regional and sub -regional centres by the educational officers. The duration of training programme is three months. WorkersEducationScheme Aims and Objectives  It is important for Industrial peace and Harmony, healthy Management- labour relations.  Develop Effective trade unions through better trained officials and more enlightened members.  Enhance the leadership skills which enables the worker in his development.  Increase the total labour mass literacy.  Better understanding of the problem, with effective solutions  To fulfill the Organisations requirements through proper responsibility handling.  The pre-condition of workers education literacy.  Important consideration at the present stage of developing country.  To understand the workers privileges, rights and obligations.  Time-to-time training programs to upgrade the workers knowledge.  Minimize the Industrial Accidents and other mishaps on the shop floor.  National Commission on Labour, has said that the labour‘s/ workers education should have the following key areas to be studied:-  This should employee independent, intelligent and innovative.  He should be responsible, alert, and self-disciplined.  Also Guided the National trade union centers to arrange for the quality programs with the Collaboration with some of the universities and Institutions. Craftsmens Training Programme.  To promote the efficiency of craftsmen  To conduct various types of test for selection of craftsmen trainees  The duration of the course is one to two years  National trade certificate is issued for successful candidates Craft Instructors Training. Education- ITI or diploma is required Advanced Vocational Training System. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 38. BA7034 Industrial Relations and Labour welfare 40 To give training to advanced skill workers &technicians. Foremans Training. For the training of foreman an institute was set up Training is provided to the existing and potential shop foremen and supervisors in theoretical and managerial skills and workers from industry in advanced technical skills Apprenticeship Training Scheme.  Apprenticeship act,1961  Employers are required to engage apprentices Part Time Training for Industrial Workers. To conduct part time evening classes are organized to improve the standards of working Vocational Training Programme for Women. It includes instructor training,basic training and advanced training in selected trades particularly suitable for women www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 39. BA7034 Industrial Relations and Labour welfare 41 UNIT 4 INDUSTRIAL SAFETY 4.1 Causes of Accidents Accident: According to Worker‘s Compensation Act, 1923, ―An occurrence mishap or untoward event which is not expected or designed for and arising out of and in the course of employment of an industrial worker.‖ Industrial Injury: According to Factories Act, 1948, ―A Personal Injury to an employee which has been caused by an accident or an occupational disease and which arises out of or in the course of employment and which could entitle such employee to compensation under Workers Compensation Act, 1923.‖ 7 Most Common Causes of Workplace Accidents Shortcuts Humans are notoriously lazy, so taking shortcuts is a rather common practice in all walks of life, not necessarily work alone. However, when workers take shortcuts at work, especially when they are working around dangerous machinery or lethal chemicals, they are only exposing themselves to a potential catastrophe. Simply put, shortcuts that are taken on the job are not actually shortcuts. They are simply increasing your risk of injury, or worse, death. Overconfidence Confidence is always a great thing to have, but there is also such a thing as too much confidence. When workers walk into work everyday with the attitude that, ―It will never happen to me‖, they are setting an attitude that leads to incorrect procedures, methods, and tools while working. Be confident, but remember that you are not invincible. Poor, or Lack Of Housekeeping Whenever someone walks through your workplace, they can get a pretty good idea of your attitude towards workplace safety by just looking at how well you‘ve kept up your area. Housekeeping is one of the most accurate indicators of the company‘s attitude towards production, quality, and worker safety. A poorly kept up area leads to hazards and threats everywhere. Not only does good housekeeping lead to heightened safety, but it also sets a good standard for everyone else in the workplace to follow. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 40. BA7034 Industrial Relations and Labour welfare 42 Starting a Task Before Getting All Necessary Information The quickest way to get a job done is to do it right the first time. To do it right the first time, you need to make sure that you have any and all pertinent information relating to the task you will be performing. Workers who begin a job with just half the information, or half the instructions, are essentially doing the job while blind. Remember this; it‘s not stupid to ask questions, it is stupid not to. Neglecting Safety Procedures This is probably the worst thing that any employee at any level in the organization can do. Deliberately neglecting set safety procedures in the workplace doesn‘t just endanger yourself, but it endangers the workers around you as well as the company as a whole. Casually following safety procedures doesn‘t work either. You are paid to follow workplace safety procedures, not your own. Mental Distractions Everyone has a life outside of the workplace, and sometimes life can take dips and turns that affect your emotions and your mood negatively. However, as harsh as it sounds, workers cannot let mental distractions from their personal lives affect their performance at work. Not only will they become less aware of their surroundings and less safe, but they will also become less productive, costing the company time and money. Types of Industrial Accidents Industrial accidents can occur in many different industries. From mining to construction, each industry has its unique challenges and hazards. Even with strict state and federal regulations, workplace safety can often depend on individual employers and how seriously they take safety in the workplace. Construction Accidents Construction sites are one of the most dangerous places to work. Despite strict regulations, workers are often seriously injured. Chemical Plant Accidents Industrial plants often house combustible chemicals that are either the byproducts of manufacturing, or the basis for creating new chemicals. Regardless, exposure to chemicals is a real and everyday danger that plant workers face. Click here to read more about plant accidents. Industrial Plant Accidents Industrial plants such as fertilizer plants have been in the news of late for huge explosions that have resulted in numerous fatalities. Safeguarding every aspect of these plants is an expensive proposition, and oftentimes employers cut corners at the expense of employee safety. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 41. BA7034 Industrial Relations and Labour welfare 43 Mining Accidents Mines are notoriously dangerous places to work. Not only are miners more to collapses and the injuries that can result, but they are also subjected to dust, chemicals, and other hazardous materials. 4.2 Preventing Industrial Accidents The organization should have strong voluntary machinery for the prevention of accidents and should follow strictly the guidelines issued by the Government. The machinery for prevention of accident and can be studied under heads (a) voluntary machinery and (b) regulatory machinery. New techniques in accident prevention Ergonomics Functional anatomy Physiology Engineering Psychology Damage control Industrial hygiene Department Industrial health programme General safety Rules 5 Best Practices to Prevent Workplace Accidents Shortcuts & Shortcomings It's natural to want to get the job finished on schedule -- or even ahead of time -- but with a "get it done quick" attitude, accidents happen. Don't take shortcuts -- stick to the instructions and work with diligence and awareness of your surroundings. Also, if there are shortcomings in the instructions, don't begin the work until they are clarified and all your questions are answered! You must always be comfortable and familiar with the procedure before commencing any work. Safety in Transit According to OSHA, workplace-driving accidents cost employers an average of $60 billion a year. Make sure that all company vehicles are inspected each month and necessary repairs are made as soon as possible. Before driving a company vehicle, check break lights, turn signals, tire pressure and amount of gas in the tank. For The Employer OSHA's "Work-Related Roadway Crashes: Prevention Strategies for Employers" is an excellent resource, filled with driving strategies, policies and programs to implement in your workplace. 1.Weather the Weather Both inside and outdoor work may expose you to extreme conditions. Whether very hot or very cold, both ends of the temperature spectrum can impact your health. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 42. BA7034 Industrial Relations and Labour welfare 44 a.Cold: Dress in layers and make sure you properly cover your head, feet, hands and face -- these parts of your body are most prone to frostbite. Always keep a change of clothes at work in case your clothes get wet. For The Employer If your workers are exposed to cold conditions, install on-site heating devices. b.Heat: Wear loose-fitting clothes, take frequent breaks in a cool rest area and get plenty of fluids. If you have preexisting medical conditions,consult your doctor before working in extreme c. heat. For The Employer If your workers are exposed to extreme heat, make sure there is adequate ventilation and airflow -- open windows and utilize fans. Make PPE a VIP Personal Protective Equipment is crucial to prevent injury, so make sure you wear it… and wear it properly! This includes: . Goggles and face protection to protect from flying particles, chemicals or caustic liquids. a.Gloves to prevent cuts, scrapes, punctures, burns, chemical absorption or temperature extremes. b.Hard hats to safeguard against falling objects. c.Safety shoes for work areas where heavy objects could be dropped and injure the feet. d.Ear muffs or ear plugs to protect against hearing damage in noisy workplaces. e. For The Employer Providing the safety equipment isn't enough -- you must make sure that your workers know how to use it properly. Provide adequate PPE training. Shipshape Safety: -- Many workers don't realize the negative consequences of poor housekeeping. If an unkempt workplace becomes the norm -- paper, debris, clutter and spills are accepted as "familiar" -- then more serious health and safety hazards are overlooked and injuries become more probable. Housekeeping goes beyond personal cleanliness -- it also includes keeping work areas orderly, taking care of any slip-and- trip hazards as soon as they arise and removing waste and fire hazards regularly. Assess your work environment with a critical eye and pay attention to the layout of the workplace, aisle marking, adequacy of storage and maintenance. Report dangers or deficiencies right away! For The Employer OSHA's Good Housekeeping in Industry not only explains the significance and benefits of good housekeeping, but also provides a good housekeeping checklist and elements of a good housekeeping campaign. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 43. BA7034 Industrial Relations and Labour welfare 45 4.3 Safety provisions The statutory safety provisions as applicable to factories in India are found in sections 21 through 40 of the Factories Act, 1948. A detailed version of each of these sections are listed below. The number mentioned in the right hand extreme refers to the actual number of section as found in the Act. Section 21. Fencing of machinery Section 22. Work on or near machinery in motion Section 23. Employment of young persons on dangerous machines Section 25. Casing of new machinery Section 27. Hoists and lifts Section 28. Lifting machines, chains, ropes and lifting tackles Section 29. Revolving machinery Section 30. Pressure plant Section 31. Floors, stairs and means of access Section 32. Pits, sumps, openings in floors, etc. Section 33. Excessive weights Section 34. Protection of eyes Section 35. Precautions against dangerous fumes, gases, etc. Section 36 a. Precautions regarding the use of portable electric light Section 37. Explosive or inflammable dust, gas, etc Section 38. Precautions in case of fire Section 39. Power to require specifications of defective parts or tests of stability Section 40. Safety of buildings and machinery Section 40 a. Maintenance of buildings Section 40 b. Safety officers Section 41. Powers to make rule to supplement PROVISIONS REGARDING THE SAFETY OF WORKERS Sections 21 to 40A, 40B and 41 of the Act lay down rules for the purpose of securing the safety of workers. Summary of the provisions of the Factories Act regarding the safety of the workers are stated below: (Sections 2l to 41) . 1. Fencing ot machinery. All dangerous machinery must be securely fenced e.g., moving .parts- of prime movers and flywheels connected to every prime mover. electric generators. etc.-Sec. 2l. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 44. BA7034 Industrial Relations and Labour welfare 46 2. Work on or near machinery in motion. Work on or near machinery in motion must be carried out only by specially trained adult male workers wearing tightly fitting c1othes.-Sec. 22. 3. Employment of young persons on dangerous machines. No young person shall work at any danger()us machine' unless he has been specially instructed as to the dangers and the precautions to be observed. has received sufficient training about th~ work. and is under the supervision of some person having thorough knowledge and experience of the machine.-Sec. 23. 4. Striking gear and devices for cutting off power. In every factory suitable devices for cutting off power in emergencies from running machinery shall be provided and maintained in every workroom.~. 24. 5. Self-acting machines. Moving parts of a self-acting machine must not be allowed to come within 45 cms. of any fixed structure which is not part of the machine.-Sec. 25. 6. Casing of new machinery. In all machinery installed after the commencement of the Act. certain parts must be sunk, encased or otherwise effectively guarded e.g.. set screw. bolt. toothed gearing etc. -sec. 26. 7. Women and children near cotton Openers. Women and children must not be allowed to work near cot/On openers, except In certain cases.-Sec. 27 8. Hoists, lifts, chains etc, Every hoist and lift must be so constructed as to be safe. There are detailed rules as to how such safety is to be secured. There are similar provisions regarding lifting machines. chains, ropes and lifting tackle .Sec. 28. 29. 9. .Revolving machinery. Where grinding is . carried on the maximum safe working speed of every revolving machinery connected therewith must be notified. Steps must be taken to see that the safe speed is not exceeded.-Sec. 30. 10. Pressure plant. Where any operation is carried on at a pressure higher than the atmospheric pressure, steps must be taken to ensure that the safe working pressure is not exceed~cL-.sec. 31. . 11. Floors, stairs and means of access. All floors, steps, stairs, passage and gangways shall be of sound construction and properly maintained. Handrails shall be provided where necessary. Safe means of access shall be provided to the place where the worker will carry on any work.-Sec. 32. www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 45. BA7034 Industrial Relations and Labour welfare 47 12. Pits, sumps. openings in floors etc. Pits. sumps. openings in floors etc. must be securely covered or fenced.-Sec. 33. 13. Excessive weights. No worker shall be made to carry a load so heavy as to cause him injury.-8ec. 34. 14. Protection of eyes. Effective screen or suitable goggles shall be provided to protect the eyes of the worker from fragments thrown off in course of any manufacturing process and from excessive light if any.-Sec. 35. 15. Precautions against dangerous fumes. No person shall be allowed to enter any chamber. tank etc. where dangerous fumes are likely to ,be present. unless it is equipped with a manhole or other means of going out. In such space no portable electric light of more than 24 ,volts shall be used. Only a lamp or light of flame proof construction can be used in such space. For people entering such space suitable breathing apparatus, reviving apparatus etc. shall be provided. Such places shall be cooled by ventilation before any person is allowed to enter.-8ecs. 36 and 36A. 16. Explosive or inflammable gas etc. where a manufacturing process produces inflammable gas. dust. fume. etc. steps must be taken to enclose the machine concerned, prevent the accumulation of substances and exclude all possible sources of ignition. Extra precautionary measures are to be taken where such substances are worked at greater than the atmospheric. pressure.-Sec. 37. 17. Precaution in case of fire. Fire escapes shall be provided. Windows and doors shall be constructed to open outwards. The means of exit in case of the fire shall be clearly marked in red letters. Arrangements must be made to give warning in case or fire -sec. 38 18. Specifications of defectives etc. and safety of buildings and machinery. If any building or machine is in a defective or dangerous condition, the inspector of factories can ask fer the holding of tests to determine how they can be made safe. He can also direct the adoption of the measure necessary to make them safe. In case of immediate danger, the use of the building or machine can be prohibited.-Secs. 39. 40. 19. Maintenance of Buildings. If the Inspector of Factories thinks that any building in a factory, or any. part of it. is in such a state of disrepair that it is likely to affect the health and welfare of the workers. he may serve on the occupier or manager or both in writing specifying the measures to be done before the specified date. Sec. 4OA. Safety Officers. The State Government may notify to the occupier to employ a www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 46. BA7034 Industrial Relations and Labour welfare 48 number of Safety Officers in a factory (i) wherein one thousand or more workers are ordinarily employed. or (ii) wherein any manufacturing process or operation which involves the risk of bodily injury, poisoning. disease or any other hazard to health of the persons employed in the factory .-Sec. 40B. Rules. The State Government may make rules providing for the use of such further devices for safety as may be necessary. Sec. 41. 4.4 Industrial health and hygiene Meaning The Joint I.L.O AND W.H.O committee on organizational health held in 1950 defined organizational health as  The promotion and maintenance of physical, mental and social well-being of workers in all occupations.  Preventing among workers of ill health caused by the working conditions.  Protection of workers in their employment from risk factors adverse to health.  Placing and maintenance of worker in an occupational environment adapted to his physical and psychological equipment. Importance of Industrial Health  As the large member of workers spend a great deal of their time in an organization, their environment is not usually conducive to a health life.  Malnutrition, insanity and psychological conditions and the stress and strain under which they work is very injurious to their health.  The symptoms of bad health are a high rate of absenteeism and turnover and indiscipline, poor performance and low productivity.  Industrial health programmes are very useful for reduction in the rate of labour turnover, absenteeism, accidents, lower performance and occupational diseases. PROVISIONS REGARDING THE HEALTH OF WORKERS Sections 11 to 20 of the Act contain certain provisions intended to ensure that the www.Vidyarthiplus.com www.Vidyarthiplus.com
  • 47. BA7034 Industrial Relations and Labour welfare 49 conditions under .which work is carried on in factories do not affect the health of the workers injuriously. The summary of the provisions are explained below : Summary of the provisions of the Factories Act. relating -to the health of workers are stated below. 1. Cleanliness. Every factory shall be kept clean and free from dirt, and the outflow of drains etc. The floors must be cleaned. Drainage shall be provided. Inside walls, partitions and ceilings must be repainted at least once in five years. When washable water paint is used they must be painted once every three years and washed at least every period of six months.-Sec. 11,' as amended in 1976. 2. Disposal of wastes and effluents. The waste materials produced from the manufacturing process must be effectively disposed off-Sec. 12. 3. Ventilation 'and Temperature. There must be provision for adequate ventilation by the circulation of fresh air: The temperaturemust be kept at a comfortable level. Hot parts of machines must be'separated and insulated.-Sec. 13. 4. Dust and Fume. If the .manufacturing process used. gives off injurious or offensive dust and fume steps must be taken so that they are not inhaled or accumulated. The exhaust fumes of internal combustion engines must be conducted outside the factory.- -Sec. 14. 5. Artificial humidification. The water used for this purpose must be pure. It must be. taken from some source of drinking water supply. The State Government can frame rules .regarding the process of humidification etc.-8ec. 15. . 6. OverCrowding. There must be no overcrowding in a factory. In factories existing before the commencement of the Act there must be at least 350 c.ft. (~r 55 cubic metres) of space per worker. For factories built afterwards, there must be at least 500 c.ft. (or 75 cubic metres) of space. In calculating the space, an account is to be taken of space above 14 ft. (or 5 metres) from the floor.-Sec. 16. 7. Lighting. Factories must be well lighted. Effective measures must be adopted to prevent glare or formation of shadows which might cause eyestrain.-sec. 17. 8. Drinking water. Arrangements must be made to provide a sufficient supply of wholesome drinking water. All supply' points of such water must be marked "drinking water". No such points shall be within 20 ft. (or 7.5 metres) of any latrine, washing place etc. Factories employing more than 250 workers must cool the water during the hot weather.-Sec. 18. . 9. Latrines and Urinals. Every factory must provide' sufficient number of latrines www.Vidyarthiplus.com www.Vidyarthiplus.com